Big Black Book 2018 19

Big Black Book
2018/19
Comprehensive facts and figures
for financial advisers
MACQUARIE TECHNICAL SERVICES
JULY 2018
The Big Black Book
The Macquarie Technical Services Big Black Book is an extensive reference tool containing financial planning related facts
and figures for the use of financial services professionals.
The Big Black Book covers key rules, rates and thresholds relating to:
 Personal taxation
 Family assistance
 Insurance
 Superannuation accumulation phase
 Self managed super funds (SMSF)
 Superannuation - access to benefits
 Superannuation pension phase
 Superannuation benefits tax
 Superannuation and estate planning
 Social security and aged care
Little Black Book

A quick reference tool is available to download free for both Android and Apple devices.
The latest version of the app includes embedded calculators to assist with simple tax, superannuation and social security
related calculations, as well as a news service that will be frequently updated with technical developments that may have an
impact on financial services professionals
To have the essential facts and figures that you need on a daily basis at your fingertips, download the app now. We hope you
find it a valuable tool.
Download the Little Black Book
Disclaimer:
This information is intended for the use of financial services professionals. It is general in nature and does not take into account any individuals personal circumstances,
financial needs or objectives, and we strongly recommend that clients consult with their financial adviser and read the relevant Product Disclosure Statement before making a
decision about a financial product or class of financial products.
This document dated 16 July 2018 issued by Macquarie Investment Management Limited ABN 66 002 867 003 AFSL 237 492 RSEL L0001281 (MIML) is not to be treated as
tax or legal advice.
The product disclosure statements for any of our products are available from us.
The information provided here is given in good faith and is believed to be accurate and reliable based on our understanding of the law and administrative practices of the
relevant regulators as at the date of publication. However, where it includes information provided by third parties which we are not able to independently verify, we do not
accept responsibility for errors or omissions by those third parties. This information is provided by MIML for information only. We will not be liable for any losses arising from
reliance on this information.
MIML is not an authorised deposit taking institution for the purposes of the Banking Act (Cth) 1959, and other than as expressly set out in the applicable PDS or other offer
document, MIML’s obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or
otherwise provide assurance in respect of the obligations of MIML.
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Table of Contents
The Big Black Book 2 Superannuation Guarantee (SG) 43
Little Black Book 2 Fund choice and portability 44
Personal taxation 5 Foreign superannuation transfers 45
Personal income tax rates 5 Spouse contribution splitting 46
Higher Education Loan Program (HELP) 9 Self managed superannuation funds (SMSFs) 47
Medicare levy and surcharge 10 Membership and trustee rules 47
Personal tax offsets 11 Sole purpose test 47
Capital Gains Tax (CGT) calculation method 14 Super fund residency 48
Termination of employment 14 Acquiring assets from related parties 49
Employment Termination Payments (ETPs) 15 In-house assets 50
Other general taxation information 16 Collectables and personal use assets 50
Interest rates 17 Related parties 51
Fringe benefits tax 17 Limited Recourse Borrowing Arrangements 52
Consumer Price Index (CPI) figures 20 Other SMSF investment rules 53
Average Weekly Ordinary Time Earnings (AWOTE) 21 Superannuation - access to benefits 54
Family assistance 22 Preservation 54
Family tax benefit 22 Conditions of release (COR) 55
Paid parental leave 24 Temporary residents 57
Child Care 25 Family Law Splitting 58
Single income family supplement 28 First Home Super Saver Scheme 59
Insurance 29 Superannuation pension phase 60
Life insurance 29 Account based pensions (ABPs) 60
Total and permanent disability (TPD) insurance 30 Transition to retirement pensions 61
Trauma insurance 31 Transfer balance cap 61
Income protection and business expenses insurance 32 Allocated Pension - payment factors 65
Insurance within superannuation 32 Term Allocated Pension (TAP) 69
Deductibility of TPD insurance premiums in super 33 Australian Life Tables 71
Superannuation accumulation phase 34 Survival probability 73
Contribution eligibility 34 Superannuation benefits tax 74
Contribution caps 35 Calculation of tax components 74
Historical contribution caps 38 What is a ‘superannuation interest’? 75
Government co-contribution 39 Tax treatment of lump sum member benefits 76
Low income super tax offset 39 Tax treatment of income stream member benefits 77
Claiming tax deductions - personal super contributions 40 Disability superannuation benefits 78
Fund tax treatment of contributions 41 Terminal illness benefits 78
Contributions tax for higher income earners 42 Departing Australia Super Payments 78
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Superannuation and estate planning 79 Age Pension 85
Tax treatment of lump sum death benefits 79 Superannuation accumulation assessment 87
Anti-detriment benefit 80 Superannuation income stream assessment 88
Death benefit income streams 81 Assessment of other assets 88
Definitions of dependant 82 Commonwealth Seniors Health Card 89
Definitions of spouse, child and interdependency 82 Pension loans scheme 90
Tax free income thresholds – if sole source of income 83 Residential aged care 91
Social security and aged care 84 Glossary 94
Age Pension ages 84
Service Pension ages (Veterans) 84
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Personal taxation
Personal income tax rates
In the 2018 Federal Budget the Government announced a Personal Income Tax Plan to reduce the tax burden faced by
individual taxpayers. The Plan includes progressive increases to income tax thresholds over a number of years until
2024/25.
1 July 2018 – 30 June 2022
Taxable income Tax payable* - residents Tax payable – non-residents 1
Up to $18,200 Nil
$18,201 - $37,000 Nil + 19% 32.5%
$37,001 - $90,000 $3,572 + 32.5%
$90,001 - $180,000 $20,797 + 37% $29,250 + 37%
Above $180,000 $54,097 + 45% $62,550 + 45%
Prior year’s tax rates

1 July 2017 – 30 June 2018
Taxable income Tax payable* - residents Tax payable – non-residents1
Up to $18,200 Nil
$18,201 - $37,000 Nil + 19% 32.5%
$37,001 - $87,000 $3,572 + 32.5%
$87,001 - $180,000 $19,822 + 37% $28,275 + 37%
Above $180,000 $54,232 + 45% $62,685 + 45%
* Plus Medicare levy.
Future tax rates

1 July 2022 – 30 June 2024
Up to $18,200 Nil
$18,201 - $41,000 Nil + 19% 32.5%
$41,001 - $120,000 $4,332 + 32.5%
$120,001 - $180,000 $30,007 + 37% $39,000 + 37%
Above $180,000 $52,207 + 45% $61,200 + 45%
1
For working holiday makers, 15% tax applies to the first $37,000 of income until 30 June 2022 (increasing to $41,000 from 1 July 2022), with normal
rates and thresholds applying thereafter.
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1 July 2024 – 30 June 2025
Up to $18,200 Nil
$18,201 - $41,000 Nil + 19% 32.5%
$41,001 - $200,000 $4,332 + 32.5%
Above $200,000 $56,007 + 45% $65,000 + 45%

Click to access Macquarie Personal Income Tax Calculator
Minor tax rates

1 July 2018 – 30 June 2019
Eligible taxable income or unearned income derived by a minor (i.e. a child under age 18) is subject to special tax rates.
The low income tax offset and new low and middle income tax offset cannot be used to reduce tax payable on unearned
income.
Eligible taxable income Tax payable
Up to $416 Nil
Greater of:
 66% of excess over $416 or
$417 - $1,307  difference between tax payable at ordinary tax rates on whole of taxable
income and tax on taxable income other than the eligible taxable income at
ordinary tax rates
Above $1,307 45%* of eligible taxable income
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Withholding tax on Australian income for non-resident investors
Non-residents are taxed, in Australia, only on certain types of income sourced in Australia. Non-residents are only
subject to CGT in relation to certain assets. Broadly, for CGT events on or after 12 December 2006, a non-resident can
only make a capital gain/loss if the relevant asset is ‘taxable Australian property’.
Category Country with DTA 2 Country with no DTA
Interest 10% 3 10%3
Franked dividends 0% 0%
Unfranked dividends 15%3 30%3
Direct or indirect interest in Applies where:

Taxable Australian Real
 seller is foreign resident, and  Purchaser required to withhold 12.5%4 of
Property (TARP) or
 market value of TARP is $750,000 market value and remit to ATO
option/right to acquire a TARP
interest or more
 Non-resident tax rates for individuals

Payments from entities other than
 Company tax rate for corporates
Taxable Australian real Managed Investment Trusts (MITs) 4
 45% for non-resident trustee beneficiaries
property gains and Australian
other income Country with
MIT distributions Country with no EOI5
EOI 5
2012/13 and later
15%3 30%3
Countries with Double Tax Agreements (DTA) and Exchange of Information (EOI) agreements with Australia
Anguilla 6 Fiji Malta South Korea

Antigua and Barbuda6 Finland Mauritius6 Spain
Argentina France Mexico Sri Lanka
Aruba6 Germany Monaco6 St Kitts and Nevis6
Austria 7 Gibraltar6 Netherlands St Vincent and Grenadines6
Bahamas6 Guernsey6 Netherlands Antilles6 Sweden
Belgium Hungary New Zealand Switzerland7
Belize6 India Norway Taipei
6
Bermuda Indonesia Papua New Guinea Thailand
6 7
British Virgin Islands Ireland Philippines Turkey7
Canada Isle of Man6 Poland Turks and Caicos Islands6
Chile7 Italy Romania United Kingdom
China Japan Russia United States
6 6
Czech Republic Jersey San Marino Vietnam
6
Cayman islands Kiribati Singapore
6 6
Cook Islands Macau Slovakia
Denmark Malaysia South Africa
2
General rates of withholding tax only. Individual DTA with Australia may specify a rate other than that quoted. Where available, refer to the DTA of the
country in which the taxpayer is a resident to confirm the correct rate of withholding.
3
Represents a final tax and does not generate an allowable credit when an income tax return is lodged in Australia.
4
Non-final withholding tax generates an allowable credit when an income tax return is lodged.
5
The rate of withholding on TARP capital gains and Australian other income is dependent upon whether Australia has an Exchange of Information (EOI)
agreement in place with the non-resident’s country of residence.
6
Has an EOI but not a DTA with Australia.
7
Has a DTA but not an EOI with Australia.
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Residency tests
The tests outlined in the table below are used to determine residency.
Taxation Ruling IT 2650 suggests the first two tests (‘resides’ and ‘domicile’) are usually the most relevant, and that a
period of absence from Australia of more than 2 years would generally be regarded as a substantial period of time to
support establishing a permanent abode outside Australia. The duration of the taxpayer's stay overseas is not of itself
conclusive and must be considered with all the other factors.
Test Detail When to apply
Primary test: if person ‘resides’ in

Australia according to ordinary
Resides Broad definition of the term within ordinary concepts
meaning of the word, no need to
apply other 3 tests
Domicile If permanent place of abode (home) is in Australia
183 day rule If present in Australia for more than 183 days Secondary / statutory tests: extends
the class of persons who are treated
If person is a member of certain Commonwealth as residents beyond those who
superannuation funds or an eligible Commonwealth ‘reside’ in Australia
Superannuation
government employee. Also covers person’s spouse or
child under 16
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Higher Education Loan Program (HELP)
HELP repayments are calculated on repayment income, which is taxable income plus any total net investment loss,
reportable fringe benefits total, reportable super contributions (refer to page 94) and exempt foreign employment income.
Australians who are living overseas for six months or more will also be required to make HELP repayments, if their
worldwide income exceeds the minimum payment threshold as it applies within Australia.
The Government has proposed to revise the income thresholds for repayment of HELP debt, repayment rates and
indexation of thresholds from 1 July 2018 as outlined below. Not yet law at the time of writing.
Rate of repayment
2018/19 Repayment income 2018/19 Repayment income
(applied to repayment 2017/18 Repayment income
(legislated) (proposed)
income)
Nil Less than $55,874 Less than $51,957 Less than $45,000
1.0% N/A $45,000 - $51,956
2.0% $51,957 - $57,729 $51,957 - $55,073
2.5% N/A $55,074 - $58,378
3.0% N/A $58,379 - $61,881
3.5% $61,882 - $65,594
4.0% $55,874 - $62,238 $57,730 - $64,306 $65,595 - $69,529
4.5% $62,239 -$68,602 $64,307 - $70,881 $69,530 - $73,701
5.0% $68,603 - $72,207 $70,882 - $74,607 $73,702 - $78,123
5.5% $72,208 - $77,618 $74,608 - $80,197 $78,124 - $82,811
6.0% $77,619 - $84,062 $80,198 - $86,855 $82,812 - $87,779
6.5% $84,063 - $88,486 $86,856 - $91,425 $87,780 - $93,046
7.0% $88,487 - $97,377 $91,426 - $100,613 $93,047 - $98,629
7.5% $97,378 - $103,765 $100,614 - $107,213 $98,630 - $104,547
8.0% $103,766 and above $107,214 and above $104,548 - $110,820
8.5% $110,821 - $117,469
9.0% $117,470 - $124,517

N/A N/A
9.5% $124,518 - $131,988
10.0% $131,989 and above
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Medicare levy and surcharge
Medicare levy thresholds
Medicare levy is based on taxable income (excluding the taxable component of a superannuation lump sum taxed at 0%).
Individuals with taxable income above the upper threshold for singles may be eligible for a Medicare Levy reduction
based on family income where they have a spouse or dependent children.
The rates and thresholds below are applicable in 2017/18. Thresholds for the current year (ie 2018/19) are typically not
released until the following year’s Federal Budget.
1 July 2017 – 30 June 2018
Singles Families (combined income) Medicare levy rate
Up to $21,980 Up to $37,089 8 Nil
$21,981 - $27,475 $37,0908 - $46,361 9 10% of taxable income between thresholds
Above $27,475 Above $46,3619 2% of taxable income
Eligible for Seniors and Pensioners Tax Offset Medicare levy rate
Up to $34,758 Up to $48,3858 Nil
$34,759 - $43,447 $48,3868 - $60,4819 10% of taxable income between thresholds
Above $43,447 Above $60,4819 2% of taxable income
Medicare levy surcharge

Medicare levy surcharge may apply to singles and couples who do not have adequate private health cover.
Income for surcharge purposes (refer to page 94) is used to determine liability for Medicare levy surcharge. The amount
of surcharge payable is calculated on taxable income (excluding assessable income from the taxable component of a
superannuation lump sum where the tax rate is 0%) plus reportable fringe benefits total.
Income thresholds are typically indexed on 1 July with AWOTE. However, indexation is paused until 30 June 2021.
1 July 2018 - 30 June 2019
Singles Families (combined income) Medicare levy surcharge
Up to $90,000 Up to $180,000 Nil
$90,001 - $105,000 $180,001 - $210,000 1.00%
$105,001 - $140,000 $210,001 - $280,000 1.25%
Above $140,000 Above $280,000 1.50%
The family thresholds increase by $1,500 for each dependent child after the first.
8
Plus $3,406 for each dependent child or student.
9
Plus $4,257 for each dependent child or student.
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Personal tax offsets
Low Income Tax Offset (LITO)
From 1 July 2022, the existing LITO and new low and middle income tax offset (see below) will be merged into a new
LITO.
Thresholds based on taxable income 2018/19 2022/23
Income assessed Taxable income
Max offset $445 $645
Shade-out threshold 1 $37,000 $37,000
Rate of reduction above threshold 1 $0.015 per $1.00 above $37,000 $0.065 per $1.00 above $37,000
Shade-out threshold 2 $41,000

N/A
Rate of reduction above threshold 2 $0.015 per $1.00 above $41,000
Cut-out threshold $66,667 $66,667
Effective tax free threshold $20,542 $21,595
70% of LITO entitlement is delivered through regular pay. The remaining 30% is paid as a lump sum on assessment of the
taxpayer’s income tax return.
Low and Middle Income Tax Offset (LAMITO)

LAMITO is a new non-refundable tax offset that was introduced with effect from 1 July 2018 until 30 June 2022.
Entitlement to LAMITO is in addition to the existing LITO.
1 July 2018 – 30 June 2022
Eligibility criteria Individual must:

 be an Australian resident
 have taxable income less than $125,333
Taxable Income LAMITO entitlement
$0 – $37,000 $200
$37,001 – $48,000 $200 plus $0.03 per $1.00 of income above $37,000
$48,001 – $90,000 $530
$90,001 – $125,333 $530 reduced by $0.015 per $1.00 of income above $90,000
Above $125,333 Nil
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Seniors and Pensioners Tax Offset (SAPTO)
Singles Couples (each)
Income assessed Rebate income – see page 94
Maximum offset $2,230 $1,602
Shade-out threshold $32,279 $28,974
Cut-out threshold $50,119 $41,790
Rate of reduction $0.125 per $1.00 above shade-out threshold
Either:
 reached Age/Service Pension age, and
Eligibility criteria  meet eligibility requirements for a Government pension or similar
Or
 receiving certain taxable Government payments
Spouse contribution tax offset

2018/19
Based on spouse’s:
Income assessed  assessable income

 reportable fringe benefits total
 reportable employer superannuation contributions – see page 94
18% of the lower of:
Less than $37,000  total spouse contributions for the income year; and
 $3,000
18% of the lower of:
$37,000 - $39,999  total spouse contributions for the income year; and
 $3,000 – (receiving spouse income - $37,000)
$40,000 and above Nil
Spouse must not have:

 excess non-concessional contributions for the financial year
Eligibility criteria  a total superannuation balance (see page 94) that equals or exceeds
the general transfer balance cap (see page 61) as at 30 June of the
prior financial year
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Private health insurance rebate
1 April 2018 – 31 March 2019
The private health insurance rebate is means tested based on a taxpayer's income for surcharge purposes (see page 94).
The amount of private health insurance rebate will be reduced where income is above the Medicare levy surcharge
thresholds.
Income thresholds are typically indexed on 1 July with AWOTE. However, indexation is paused until 30 June 2021. The
rebate percentage is adjusted annually on 1 April.
Income for surcharge purposes Private health insurance rebate
Singles Families (combined income) Under 65 65 - 69 70+
Up to $90,000 Up to $180,000 25.415% 29.651% 33.887%

$90,001 - $105,000 $180,001 - $210,000 16.943% 21.180% 25.415%
$105,001 - $140,000 $210,001 - $280,000 8.471% 12.707% 16.943%
Above $140,000 Above $280,000 0% 0% 0%
The family thresholds increase by $1,500 for each dependent child after the first.
Net medical expense tax offset (NMETO)

Taxpayers can claim a tax offset for net medical expenses over the set threshold. There is no upper limit on the amount
that can be claimed.
From 1 July 2015 until 30 June 2019, NMETO is only available for net medical expenses relating to disability aides,
attendant care and aged care. The offset will be repealed with effect from 1 July 2019.
2018/19
Net medical expenses definition Eligible medical expenses less refunds from Medicare or private health insurer
Income assessed Adjusted taxable income – see page 94
Income threshold - singles Up to $90,000 Above $90,000
Income threshold - couples Up to $180,000 Above $180,000
Expense threshold 10 $2,377 pa $5,609 pa
Offset rate 20% of expenses above threshold 10% of expenses above threshold
10
Indexed annually with CPI.
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Capital Gains Tax (CGT) calculation method
Purchased Capital gain treatment
Prior to 20 September 1985 Capital gain disregarded
From 20 September 1985 and prior to Net capital gain calculated using indexed cost base method (indexation frozen at
11.45 am 21 September 1999 Sept 1999) 11 OR Discount Method (see below)
 Capital losses - may be used to reduce pre-discounted capital gains
attributable to assets held for either less than or more than 12 months
 Assets held less than 12 months - gain is calculated by deducting cost base
From 11.45 am 21 September 1999 from proceeds
 Discount Method (Assets held 12+ months) - net capital gain may be
discounted by 50% 12 (individuals or trusts) 13 or 33 1/3% (complying super
funds)
Termination of employment
Accrued annual leave
Payment type Assessable Maximum tax rate
Resignation/retirement
To 17 August 1993 100% 30%*
From 18 August 1993 100% Marginal tax rate*
Genuine redundancy/invalidity/early retirement 100% 30%*
Accrued long service leave

Payment type Assessable Maximum tax rate
Resignation/retirement
To 15 August 1978 5% Marginal tax rate*
16 August 1978 – 17 August 1993 100% 30%*
From 18 August 1993 100% Marginal tax rate*
Genuine redundancy/invalidity/early retirement

To 15 August 1978 5% Marginal tax rate*
From 16 August 1978 100% 30%*

The unused annual/long service leave amounts are added to the taxpayer’s assessable income. The taxpayer receives a
tax offset to ensure the effective tax rate does not exceed the maximum rate shown above.
11
Refer to table below for CPI indexation figures.
12
An additional CGT discount of up to 10% is proposed to be available for residents who invest directly or through a trust in property that is used for
qualifying affordable housing for at least 3 years from 1 January 2018. Not yet law at the time of writing.
13
The 50% discount on capital gains is not available for non-residents in relation to capital gains accrued after 7.30pm (AEST) on 8 May 2012. The
CGT discount will remain available for capital gains accrued prior to this time where non-residents choose to obtain a market valuation of assets as at 8
May 2012.
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Genuine redundancy payments
The tax-free portion of a genuine redundancy payment is calculated outlined in the table below. An amount above the tax-
free portion is an Employment Termination Payment.
2017/18 2018/19
$10,155 plus $5,078 for every completed year of service $10,399 plus $5,200 for every completed year of service
Employment Termination Payments (ETPs)

Life benefit ETPs
Life Benefit ETPs received in 2018/19 will be taxed as follows:
Taxable component
Age Tax free component
Maximum tax rate
30%* up to cap
Under preservation age
Non-assessable 45%* above cap
non-exempt income 15%* up to cap

Preservation age and over
45%* above cap
Cap on taxable component
If ETP relates to:

 Genuine redundancy 14
 Early retirement schemes $205,000 15 ETP cap
 Invalidity
 Certain types of compensations
Cap is the lesser of:

For all other ETPs eg golden handshake or gratuity  $205,00015 ETP cap, and
 $180,000 less other taxable income 16
Death benefit ETPs

Taxable component
Beneficiary Tax free component
Maximum tax rate Cap
Dependant NANE income up to cap

(Tax definition - see page 82) 45%* above cap
Non-assessable
$205,000
non-exempt income
30%* up to cap
Non-dependant
45%* above cap
*Plus Medicare levy.
14
Includes payments that would otherwise qualify as a genuine redundancy except for the individual’s age.
15
Cap is reduced by the taxable component of previous ETPs related to the same termination and ETPs that were received in the same financial year.
16
The $180,000 whole of income cap is reduced by other taxable income (excluding the ETP) in the same financial year.
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Other general taxation information
Life policy taxation
Investment earnings on a life assurance policy, also referred to as an insurance bond, are taxed at 30% 17. Additional tax
may be payable for withdrawals within 10 years.
Annual contributions to the policy may be considered as part of the original investment, provided the amount is less than
125% of the previous year's contributions. Amounts greater than 125% will restart the 10 year period.
Year Assessable Part Tax offset
Within 8 years All accumulated bonuses 18
During the 9th year 2/3 of accumulated bonuses18 30%17 of assessable part 19
During the 10th year 1/3 of accumulated bonuses18
After 10 years Tax free N/A
Deductions for prepaid expenses

Deductions for prepaid expenses
 Expenses incurred in gaining or producing assessable income are generally tax
deductible
General deduction provisions
 Must not be capital, private or domestic in nature, or incurred in relation to
producing non-assessable, non-exempt income
 Individuals can claim an immediate deduction for up to 12 months of prepaid
non-business expenses that are otherwise deductible eg interest paid in
12 month rule advance on an investment loan
 12 month period must end before the end of the next financial year
 Not available to superannuation funds, including SMSFs
Other entity taxation rates

Entity Type Tax treatment
Complying:
 retirement phase (see page 94), and
 accumulation phase 0%
Superannuation fund
- includes transition to retirement pensions not in 15%
retirement phase
Non-complying 45%
Corporate tax entity 30%
Corporation 20 Base rate entity

 entity that carries on a business with an aggregate turnover 27.5%
of less than $50 million 21
17
The Government has proposed to decrease the corporate tax rate progressively until it reaches 25% in 2026/27. Not yet law at the time of writing.
18
Broadly, this is the growth in the value of the policy.
19
Any excess offset can be used to reduce tax on other income.
20
The Government has proposed to decrease the corporate tax rate for all corporate tax entities progressively until it reaches 25% in 2026/27.
21
The aggregate turnover threshold for base rate entities is proposed to progressively increase until it reaches $1 billion in 2022/23. Not yet law at the
time of writing.
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Interest rates
Benchmark rate – capital
Date RBA Target Rate 22 Date
protected borrowings 23
From Aug 2016 1.50% From May 2017 6.80%
May 2016 – Jul 2016 1.75% Mar 2017 – Apr 2017 6.70%
May 2015 – Apr 2016 2.00% Dec 2016 – Feb 2017 6.55%
Feb 2015 – Apr 2015 2.25% Aug 2016 – Nov 2016 6.50%
Aug 2013 – Jan 2015 2.50% May 2016 – Jul 2016 6.65%
May 2013 – Jul 2013 2.75% Apr 2016 – Apr 2016 6.85%
Nov 2015 – Mar 2016 6.90%
Sep 2015 – Oct 2015 6.75%
May 2015 – Aug 2015 6.45%
Fringe benefits tax

Fringe benefits tax is a tax that is payable by employers based upon certain benefits provided to employees or their
associates. This information is subject to change each FBT year, which runs from 1 April to 31 March.
FBT 1 April 2018 – 31 March 2019
FBT Rate 47%
Exemption threshold $8,552
Type 1 gross-up rate 2.0802 (assumes provider entitled to GST input tax credits, 10% GST and 47% FBT rate)
Type 2 gross-up rate 1.8868 (47% FBT rate)

 $17,000 (Qualifying public or non-profit hospital, public ambulance service), or
 $30,000 (Public benevolent institution or health promotion charity not covered by
FBT exempt amount $17,000 threshold)
Note: salary packaged meal entertainment and entertainment facility leasing expense
benefits are capped at $5,000
Reportable fringe benefit

$2,000
amount (RFBA)
Type Description of taxable value
Car benefits See page 19

 The taxable value of a loan fringe benefit is the difference between a notional
amount of interest (calculated on a daily balance of the loan) at the statutory
Loan benefits rate and the actual amount of interest calculated on the loan
 Statutory benchmark for the FBT year commencing 1 April 2018 is 5.20%
 Taxable benefit arises where employer waives a debt of an employee
Debt waiver fringe benefits
 The taxable value of the benefit is the amount of the debt waived
 Taxable benefit arises where employer pays or reimburses expenses incurred
by an employee
Expense payment fringe benefits
 Taxable value of expense payment fringe benefits is the amount of the
expense paid by the employee but reimbursed by the employer
22
The rate banks charge each other for overnight borrowings (i.e. the cash rate).
23
This is the maximum rate that can be claimed as an interest deduction for geared capital protected investments, calculated as the RBA Indicator
Lending Rate for standard variable housing loans plus 1%. The ATO has issued a Determination confirming the Indicator Rate for standard variable
housing loans for investors should be used from 11 September 2015.
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Type Description of taxable value
 Taxable benefit arises where employer grants an employee an housing right
which must be greater than one day
 The taxable value of the benefit depends on the location of the housing:
- for accommodation outside Australia, the taxable value will be the
market value of the accommodation less any rent or consideration paid
Housing fringe benefits - for non-remote area housing in Australia, the taxable value is generally
the ‘statutory annual value’ of the right to occupy the accommodation
less any rent paid. In the first year, the ‘statutory annual value’ is the
market value of the accommodation and in subsequent years it is
indexed to CPI.
- remote area housing in Australia is an exempt benefit provided certain
criteria are met
 Board benefits arise when employees are entitled under an industrial award or
employment arrangement to accommodation and two meals a day
Board fringe benefits
 Taxable value is $2 per meal (if age 12 or more) or $1 per meal (if under age
12) reduced by the amount of the recipients contribution
 LAFHA fringe benefit arises when an employer pays an employee an
allowance to compensate for additional expenses because the employee is
required to live away from home
 The taxable value of LAFHA benefits provided is the amount of the allowance
paid that exceeds the exempt accommodation component and any exempt
food component. This applies for employees that meet the fly-in-fly out or
drive-in-drive out requirements, or where the employee meets the following
conditions:
Living away from home allowance - they maintain a home in Australia
(LAFHA) fringe benefits
- the benefit relates to all or part of the first 12 months that the person is
required to live away from home
- they provide a declaration confirming the above
 In any other case, the taxable value of the LAFHA benefit is the amount of the
benefit provided.
 The ATO considers a reasonable amount for the food and drink component to
be $265 per week within Australia for one adult for the FBT year commencing
1 April 2018
 Property benefits arise when property is provided to an employee. The form of
the property may take the form of goods, services, shares or rights and bitcoin
 The taxable value of property benefits is the amount by which the arm’s length
Property fringe benefits
cost of the goods provided exceeds the price charged to the employee
 For in-house property benefits, the first $1,000 of the taxable value for each
employee will be exempt
The taxable value of meal entertainment fringe benefits is calculated by either:
 the 50:50 method – one half of the expenses incurred is the taxable value of
the benefits provided, or
Entertainment fringe benefits  the 12 week register method – taxable value is the total meal expenditure
multiplied by the register percentage. The register percentage is the total
percentage of meal entertainment benefits provided divided by total value of
meal entertainment provided
Taxable value of car parking benefit can be determined using any of the:
 Commercial parking station method
Car parking fringe benefits  Market value method
 Average cost method
 Statutory formula method
 12 week register method
 A residual benefit is one that is not covered by any of the above.
 The taxable value of an in-house residual fringe benefit is 75% of the lowest
price charged to the public. However, the first $1,000 of the taxable value for
Residual fringe benefits
each employee will be exempt.
 For residual benefits that are not in-house benefits, the taxable value is the
arm’s length cost of the benefit to the employer less any amount paid
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Car fringe benefits
Under the current car fringe benefit rules, the taxable value of a car fringe benefit can be calculated using either the
statutory formula method or the operating cost method.
Method for determining taxable value
Taxable value of car fringe benefit = ABC - E

D
Where
 A is base value of car
Statutory formula method  B is statutory rate (see table below)
 C is number of days during the year on which a car fringe benefit was
provided
 D is the number of days during the year
 E is the amount of any ‘recipient’s payment’
Taxable value of car fringe benefit = [C x (100% - BP)] - R
Where:
 C is operating cost of the car during the holding period
 BP is the business use percentage applicable for the holding period
 R is the amount of any recipient’s payment attributable to the holding period
Note - operating cost includes depreciation, which is calculated as:

Operating cost method Depreciation = abc
d
Where:
 a is the depreciated value
 b is 0.25 for cars acquired on or after 10 May 2006
(0.1875 for cars acquired before 10 May 2006 but on or after 1 July 2002 and
0.225 otherwise)
 c is the number of days car is held during the year
 d is number of days in the year
Statutory rates
A flat statutory rate of 20% applies to all new contracts entered into after 7.30pm (AEST) on 10 May 2011. Changes for
new contracts will be phased in over four years unless an employer elects not to apply the transitional arrangements.
However, an employer cannot force an employee to move to the new rules where the employee would be directly worse
off.
New contracts
Annualised number of Existing contracts
whole kilometres From From From From
prior to 10 May 2011
10 May 2011 1 April 2012 1 April 2013 1 April 2014
Less than 15,000 0.26 0.20 0.20 0.20 0.20
15,000 - 24,999 0.20 0.20 0.20 0.20 0.20
25,000 - 40,000 0.11 0.14 0.17 0.20 0.20
More than 40,000 0.07 0.10 0.13 0.17 0.20
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Consumer Price Index (CPI) figures
Year March June September December
2018 112.6
2017 110.5 110.7 111.4 112.1
2016 108.2 108.6 109.4 110.0
2015 106.8 107.5 108.0 108.4
2014 105.4 105.9 106.4 106.6
2013 102.4 102.8 104.0 104.8
2012 99.9 100.4 101.8 102
2011 98.3 99.2 99.8 99.8
2010 95.2 95.8 96.5 96.9
2009 92.5 92.9 93.8 94.3
2008 90.3 91.6 92.7 92.4
2007 86.6 87.7 88.3 89.1
2006 84.5 85.9 86.7 86.6
2005 82.1 82.6 83.4 83.8
2004 80.2 80.6 80.9 81.5
2003 78.6 78.6 79.1 79.5
2002 76.1 76.6 77.1 77.6
2001 73.9 74.5 74.7 75.4
2000 69.7 70.2 72.9 73.1
1999 67.8 68.1 68.7 69.1
1998 67.0 67.4 67.5 67.8
1997 67.1 66.9 66.6 66.8
1996 66.2 66.7 66.9 67.0
1995 63.8 64.7 65.5 66.0
1994 61.5 61.9 62.3 62.8
1993 60.6 60.8 61.1 61.2
1992 59.9 59.7 59.8 60.1
1991 58.9 59.0 59.3 59.9
1990 56.2 57.1 57.5 59.0
1989 51.7 53.0 54.2 55.2
1988 48.4 49.3 50.2 51.2
1987 45.3 46.0 46.8 47.6
1986 41.4 42.1 43.2 44.4
1985 37.9 38.8 39.7 40.5
Source: ABS catalogue number 6401.0 – (All groups - weighted average of eight capital cities)
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Average Weekly Ordinary Time Earnings (AWOTE)
Year March June September December
2017 n/a 1,543.20 n/a 1,569.60
2016 n/a 1,516.00 n/a 1,533.40
2015 n/a 1,483.10 n/a 1,500.50
2014 n/a 1,454.10 n/a 1,477.00
2013 n/a 1,420.90 n/a 1,437.00
2012 1,348.10 1,349.20 n/a 1,396.00
2011 1,291.30 1,304.70 1,324.90 1,330.10
2010 1,243.90 1,250.10 1,258.80 1,275.20
2009 1,183.40 1,195.60 1,204.20 1,226.80
2008 1,124.80 1,131.10 1,151.40 1,165.30
2007 1,073.80 1,090.00 1,105.10 1,108.50
2006 1,037.50 1,041.60 1,053.00 1,058.60
2005 992.90 1,006.70 1,023.20 1,025.70
2004 947.80 949.50 962.90 976.40
2003 900.40 921.00 929.60 938.40
2002 860.50 866.80 879.40 889.60
2001 810.60 824.10 838.50 848.70
2000 774.80 784.20 796.10 800.40
1999 743.80 747.30 753.00 764.20
1998 721.30 725.20 735.40 742.70
1997 696.10 697.60 704.30 710.90
1996 665.80 671.20 674.60 685.50
1995 639.90 647.20 653.10 661.00
1994 612.30 616.90 620.00 629.90
1993 595.50 598.00 600.80 603.50
1992 588.80 587.30 585.70 586.90
1991 564.30 560.20 567.50 580.10
1990 524.80 534.50 541.70 554.40
1989 493.40 501.40 509.70 516.80
1988 458.80 465.60 470.10 484.50
1987 429.60 435.60 446.00 450.00
1986 404.90 408.30 419.80 428.40
1985 378.00 383.10 388.80 397.10
1984 353.60 364.90 369.40 375.20
1983 335.20 336.50 339.80 351.70
1982 293.50 306.00 317.70 331.50
1981 270.70 295.10 304.00 285.20
1980 245.70 256.70 268.10 289.10
1979 222.70 232.80 238.30 248.00
1978 205.20 215.50 218.90 229.10
1977 182.90 198.70 203.90 213.60
1976 165.30 180.70 184.70 195.50
1975 143.80 156.40 157.10 172.40
1974 105.60 119.90 129.00 143.90
Source: ABS catalogue number 6302.0
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Family assistance
Family tax benefit
Family Tax Benefit (FTB) Part A eligibility
1 July 2018 – 30 June 2019
Income test Maximum rate Base rate
Income assessed Family’s adjusted taxable income – see page 94
Income threshold $53,728 $94,316
Max rate reduced by $0.20 per $1.00 Base rate reduced by $0.30 per $1.00
Reduction rate above threshold until base rate is above threshold until FTB Part A is no
reached longer payable
Paused until 30 June 2021 (not yet law

Threshold indexation Indexed each 1 July in line with CPI
at time of writing)
FTB Part A payment rates

FTB Part A supplement (see table below) may be payable after the end of the financial year. An energy supplement may
also be payable to those continuously in receipt of FTB Part A from 19 September 2016.
Indexation of payment rates is paused until 30 June 2019.
1 July 2018 – 30 June 2019
For each child Maximum rate per annum Base rate per annum
Under 13 years $4,766.90
13 – 15 years $1,529.35
$6,201.35
16 – 19 years (if full time student)
Child in an approved care organisation

$1,529.35 N/A
0 – 19 years
FTB Part A supplements

The following supplements may be payable in addition to the FTB Part A payment rates.
1 July 2018 – 30 June 2019
Supplement Amount per annum
$751.90 per child (where family’s income is $80,000 or less). Not

FTB Part A supplement
payable to approved care organisations
$4,120.85 for triplets

Multiple birth allowance
$5,489.60 for quadruplets or more
Family Tax Benefit (FTB) Part B eligibility
1 July 2018 – 30 June 2019
Income test
Income assessed Adjusted taxable income – see page 94
Phase-out threshold – secondary earner $5,621
Cut-out threshold – secondary earner, youngest child

$27,722
under age 5
Cut-out threshold – secondary earner, youngest child

$21,608
age 5 -18 years
Cut-out threshold – primary earner/sole parent $100,000
Max rate reduced by $0.20 per $1.00 above secondary earner’s

Reduction rate
phase-out threshold
Secondary earner thresholds indexed each 1 July in line with CPI.

Threshold indexation Primary earner threshold fixed until 30 June 2021 (not yet law at the
time of writing)
FTB Part B payment rates

Individuals can choose to receive their FTB Part B payments fortnightly or annually. The FTB Part B supplement may be
payable after the end of the financial year, depending on family income and circumstances. An energy supplement may
also be payable to those continuously in receipt of FTB Part B from 19 September 2016.
FTB Part B is not payable to couple families (other than grandparents and great-grandparents) where the youngest child
is aged 13 or over.
Indexation of FTB Part B payment rates is paused until 30 June 2019.
1 July 2018 – 30 June 2019
Age of youngest child Under 5 years Annual supplement
Under 5 years $4,055.15

$365.00
5 – 15 years (or 16 – 18 if full time student) $2,832.40
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Paid parental leave
1 July 2018 – 30 June 2019
Parental Leave Pay (PLP) Dad and Partner Pay (DAPP)
Claimants of PLP or DAPP must have:

 worked at least 10 of the 13 months before the birth, adoption or date of claim
Eligibility criteria  worked at least 330 hours in that 10 month period
 adjusted taxable income (see page 94) of $150,000 1 or less in the financial year prior to
the date of birth, adoption or date of claim, and
 be an Australian resident
A person who is the:

 biological father of the child
 partner of the child's mother (including
A person who is the:
same-sex partner), or
Who can claim?  primary carer of a newborn or recently  adoptive parent of the child
adopted child
And, who is:
 providing care for a newborn or recently
adopted child
Can be taken in conjunction with, or in Can be taken in addition to employer-
Impact of employment addition to, employer-provided leave, but not provided leave, but not at the same time as
while working paid leave or while working
Term 18 weeks 2 weeks
Amount $719.35 per week
Tax Treatment Assessable income
Impact on other family Ineligible for FTB Part B during the 18 week
May continue to receive FTB
benefits paid parental leave period
1
This threshold will remain fixed until 30 June 2021 (not yet law at time of writing).
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Child Care
Child care subsidy
Child care subsidy (CCS) replaced the Child Care Benefit and Child Care Rebate with effect from 2 July 2018. Eligibility
for the subsidy is based on an income and activity test.
CCS may be supplemented by an Additional Child Care Subsidy to provide extra support for disadvantaged and
vulnerable children.
Child care subsidy 2 July 2018 – 30 June 2019
Income test
Income assessed Adjusted taxable income of claimant and partner (family income)
Family Income
Up to $66,958 85%
$66,959 - $171,957 85% reduced by 1% per $3,000 of income above $66,598
$171,958 - $251,247 50%
$251,248 - $341,247 50% reduced by 1% per $3,000 of income above $251,247
$341,248 - $351,247 20%
Activity Test
Claimant must engage in:

 paid work, including paid and unpaid leave
 self-employment
 a training course to improve work skills or employment prospects
 an approved course of education or study
 unpaid work experience
 unpaid work in a family business
Activity test  voluntary work
 activity related to looking for work
 activity related to setting up a business
Activity specific conditions and time limits apply in some cases.
Max hours of CCS is based on hours of claimant’s activity. For a couple,
max hours of CCS is based on partner with lower hours of activity.
Families with annual income of $66,598 or less can access up to 24
hours per fortnight of subsidised care without meeting the activity test.
Hours of activity pf Max hours of CCS pf
Less than 8 hours Nil
8 – 16 hours 36 hours
Activity and max CCS hours
16- 48 hours 72 hours
More than 48 hours 100 hours
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CCS hourly rate cap
Care provided by … Hourly rate cap (per child) Annual subsidy cap
Centre-based day care $11.70 per hour
Family day care $10.90 per hour

$10,190 per child where family
Outside school hours care $10.29 per hour income exceeds $186,958
In-home care 2 $25.48 per hour per family
Calculating weekly child care subsidy

Step Description
Activity test: Work out the maximum number of hours in which CCS is payable (Max hours of CCS) based on
1
claimant and their partner’s activity for the relevant fortnight. If nil, CCS for the fortnight is nil.
2 Annual subsidy cap: Work out whether the annual subsidy cap applies. If cap has been reached, CCS is nil.
3 Eligible care sessions: Identify all sessions of care for the week for which the claimant is eligible for CCS.
CCS hourly rate: Work out the hourly rate of CCS (ie applicable CCS percentage based on family income x lesser
4
of actual hourly fee and CCS hourly cap) for the eligible care session.
Activity tested amount: For each session of care, the activity tested amount is the CCS hourly rate (step 4)
multiplied by the lesser of:
5  number of hours in the eligible care session
 balance of activity test result (step 1 reduced by earlier sessions of care in the fortnight where claimant or
partner were entitled to CCS)
CCS amount: Lesser of:
6  activity tested amount (from step 5), or
 annual subsidy cap (if applicable) less previous CCS amounts received in financial year
Child care benefit

Child Care Benefit and Child Care Rebate were replaced with a new Child Care Subsidy from 1 July 2018. The rates and
thresholds below were applicable in 2017/18.
Child care benefit maximum payment rates Ceased from 1 July 2018
Approved care 2017/18
Income tested Yes (see table below)
Income assessed Family's adjusted taxable income – see page 94
Maximum benefit – 1 non-school age child $215.00 per week ($4.30 per hour)
Maximum benefit – 2 non-school age children $449.32 per week ($4.49 per hour for each child)
$701.14 per week + $233.71 for each child after the third ($4.67
Maximum benefit – 3+ non-school age children
per hour for each child)
Registered care
Income tested No
Maximum benefit - non school-age child (each) $35.95 per week ($0.719 per hour)
2
Additional criteria for in-home care apply. The subsidy for in-home care is intended to support workforce participation and child care requirements
where other options are not available or appropriate.
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Child care benefit income test
The maximum rate of child care benefit is payable for families with adjusted taxable income less than the lower income
threshold, or families receiving Commonwealth income support. For families with income above the lower income
threshold, the following reduction rates and upper income limits apply.
Reduction rates and upper income limits for 2017/18

Adjusted taxable income
1 child in approved care 2 children in approved care 3+ children in approved care
Up to $45,114 Nil Nil Nil
$45,114 - $105,263 Nil + 10% Nil + 15% Nil + 15%
Above $105,263 $6,014.90 + 10% $9,022.35 + 25% $9,022.35 + 35%
$183,655 + $34,724 for each

Upper income limits $156,914 $162,633
child after the third
Calculating child care benefit – approved care

Step Description
1 Calculate the maximum approved care entitlement based on 50 hours of approved care over 52 weeks
If the family’s adjusted taxable income (see page 94) is above $45,114, calculate the income test reduction by
2 multiplying the amount of adjusted taxable income in excess of the relevant threshold by the taper rate and adding
the base amount payable
3 Reduce the maximum entitlement (step 1) by the income test reduction amount (step 2)
4 Divide the result of step 3 by (52 x 50) to calculate the per-child per-hour amount
For each child multiply the amount in step 4 by the number of hours of care per week and number of weeks per
5
year (rates for school age children are 85% of non-school age children rate)
6 Add together the per child amounts in step 5 to obtain the total benefit
Child care rebate

Child Care Benefit and Child Care Rebate were replaced with a new Child Care Subsidy from 1 July 2018. The
information below was applicable in 2017/18.
Child care rebate Ceased from 1 July 2018
Maximum rebate $7,613
Rebate amount 50% of (total child care fees less final child care benefit entitlement)
 Paid fortnightly, quarterly or annually
Payment  Non-refundable tax offset
 Unused rebate can be transferred to a spouse
 Used approved child care
Eligibility criteria
 Applied for child care benefit 3 and
 Worked or had work related commitments at some time during the period.
3
There is no income test for the Child Care Rebate. If you are eligible for Child Care Benefit, but your Child Care Benefit entitlement is zero due to
income, you are still eligible for the Child Care Rebate.
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Single income family supplement
Eligible individuals who are receiving family tax benefit (FTB) will not need to make a claim for SIFS as the payment will
be automatically calculated and included in their entitlement at the end of the year. Eligible individuals who are not
receiving FTB will need to apply to receive this payment.
Single income family supplement

1 July 2018 – 30 June 2019
(SIFS)
Tax treatment Tax exempt
Claimant must:
 have been eligible for SIFS since 30 June 2017
Eligibility criteria  have a least one qualifying FTB child
 be an Australian resident or be special category visa holder, and
 not be an absent overseas recipient
Primary earner income test
Less than $68,000 Nil
$68,000 - $79,999 $0.025 per $1.00 of income above $68,000
$80,000 - $120,000 $300
$120,001 - $149,999 $300 reduced by $0.01 per $1.00 above $120,000
Secondary earner income test
Income limit $18,000
SIFS calculated under primary earner income test is further reduced by $0.15 per
Rate of reduction
$1.00 of secondary earner’s taxable income above $16,000
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Insurance
Life insurance
Tax treatment
Ownership/Purpose
Premiums Benefits
 Generally a capital payment - CGT exempt

Individual for personal purposes –
Non-deductible if paid to original policy owner or policy
premiums paid by individual
acquired for no consideration
Fringe benefits tax (FBT) may

 Generally a capital payment - CGT exempt
Individual for personal purposes – apply - premium and FBT (if any)
if paid to original policy owner or policy
premiums paid by employer are generally deductible to
acquired for no consideration
employer
Payment to fund:
 generally a capital payment - CGT exempt
Payment from fund:
Trustee of super fund to provide
 subject to a condition of release being met
benefits for insured member/death Deductible 2
(see page 55)
benefits 1
 taxed as lump sum death benefit or death
benefit income stream (see pages 79-81)
 tax free if paid to member because of
terminal medical condition (see page 78)
Payment to fund:
Trustee of super fund for other
purposes eg liquidity/debt Non-deductible
repayment1 There may be further tax consequences
depending on use of payment within the fund
Business entity for revenue

 Generally ordinary income of business
purposes eg key person revenue Deductible
entity
cover
Business entity or individual for  Generally a capital payment - CGT exempt

capital purposes eg buy/sell Non-deductible if paid to original beneficial owner or policy
agreements acquired for no consideration
1
Restrictions apply to the types of cover that can be held inside super from 1 July 2014 (see page 32).
2
Assumes insured events related to terminal illness align with SIS definition of terminal medical condition (see page 55)
Total and permanent disability (TPD) insurance
Tax treatment
Ownership/Purpose
Premiums Benefits
Individual for personal purposes –  Generally a capital payment - CGT exempt

Non-deductible
premiums paid by individual if paid to insured or their relative
FBT may apply - premium and

FBT (if any) are generally
premiums paid by employer if paid to insured or their relative
deductible to employer
Payment to fund:
Deductible to extent insured
Trustee of super fund to provide events align with tax law definition Payment from fund:
benefits for insured member 3 of disability superannuation  subject to a condition of release being met
benefit 4 (see page 55)
 taxed as lump sum benefit or income
stream (see pages 76-77)
Payment to fund:

entity
cover
Business entity or individual for  Generally a capital payment – may be

capital purposes eg buy/sell Non-deductible subject to CGT if not paid to insured or their
agreements relative
3
4
Depending on the policy terms, where a fund acquired a TPD policy prior to 1 July 2014 it may require an actuary’s certificate to determine the
deductible portion or have regard to tax regulations which provide an option to apply prescribed deductible percentages for a range of TPD definitions
30 of 96
Trauma insurance
Tax treatment
Ownership/Purpose
Premiums Benefits

Non-deductible
premiums paid by individual if paid to insured or their relative
FBT may apply - premium and

FBT (if any) are generally
premiums paid by employer if paid to insured or their relative
deductible to employer
Payment to fund:
Trustee of super fund to provide Payment from fund:
Non-deductible
benefits for insured member 5
 subject to a condition of release being met
(see page 55)
 taxed as lump sum benefit (see page 76)
Payment to fund:

entity
cover
Business entity or individual for  Generally a capital payment – may be

capital purposes eg buy/sell Non-deductible subject to CGT if not paid to insured or their
agreements relative
5
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Income protection and business expenses insurance
Tax treatment
Ownership/Purpose
Premiums Benefits
Individual to protect against loss of

Generally assessable as ordinary income to
own income – premiums paid by Deductible 6
individual
individual
Individual to protect against loss of

Generally assessable as ordinary income to
own income – premiums paid by Generally deductible to employer
individual
employer
Payment to fund:
 generally not treated as assessable income
Deductible to extent insured
Trustee of super fund to provide Payment from fund:
events align with SIS temporary
benefits for insured member 7
incapacity definition (see page 55)  subject to a condition of release being met
(see page 55)
 assessable as ordinary income to individual
Business entity to protect against

loss of income or for business Deductible Generally ordinary income of business entity
expense purposes
Insurance within superannuation

Superannuation law requires trustees to ensure insurance benefits acquired from 1 July 2014 are aligned with SIS
payment rules for death, terminal medical condition, permanent incapacity or temporary incapacity. Cover held for existing
fund members that was in place prior to 1 July 2014 is not affected.
6
Excluding personal injury portion of premium
7
Restrictions apply to the types of cover that can be held inside super from 1 July 2014.
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Deductibility of TPD insurance premiums in super
For TPD insurance cover established prior to 1 July 2014, depending on the policy terms, a fund may require an actuary’s
certificate to determine the deductible portion of TPD premium or have regard to regulations which provide an option to
apply the following prescribed deductible percentages for a range of TPD definitions.
TPD definition Prescribed percentage
TPD any occupation 100%
TPD any occupation insurance with one or more of:

 activities of daily living
 cognitive loss 100%
 loss of limb
 domestic (home) duties
TPD own occupation 67%
TPD own occupation insurance with one or more of:

 loss of limb
TPD own occupation bundled with death (life) cover 80%
TPD own occupation bundled with death (life) cover with one or more of:
 loss of limb
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Superannuation accumulation
phase
Contribution eligibility
Contributor
Employer Employer
Member Spouse/other
Conditions mandated 1 non-mandated
Work test applies? 2 Yes 3 No Yes3 Yes3
Age limit 75 4 None 754 70
TFN required? Yes No No Yes
Condition description
 Applies if member is age 65 or more at time of contribution
 Requires that member has been gainfully employed for at least 40 hours in
Work test no more than 30 consecutive days in the financial year
 Work test must be met prior to the contribution being made
 Work test does not apply to downsizer contributions
 Member age from which contribution cannot be accepted
Age limit
 Age limit does not apply to downsizer contributions
1
These include contributions that an employer makes to satisfy the requirements of a particular award, certified agreement or the SG provisions (see
page 43).
2
A super fund may accept contributions in respect of a member if the trustee is satisfied that the contribution is in respect of a period during which the
member was eligible to make the contribution, even if the contribution is made later.
3
From 1 July 2019, those aged 65 to 74 are proposed to be exempt from the work test in the financial year following the year they retire, provided their
total superannuation balance at the prior 30 June is less than $300,000. Not yet law at the time of writing.
4
Contributions that are otherwise eligible may be accepted up to 28 days after the end of the month in which the individual reaches age 75, provided the
work test has been met in the financial year in which the contribution is made.
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Contribution caps
Concessional contributions
Concessional contributions (CC) cap
 Employer contributions (including salary sacrifice)
Inclusions  Personal deductible contributions (see page 40)
 Allocations from a reserve unless an exemption applies (see below)
 Reserve allocations which are:
- fair and reasonable, made to all members of the fund or a relevant class of members,
and less than 5% of member’s interest at allocation time, or
Exemptions - from a reserve solely for the purpose of enabling the fund to discharge pension
liabilities in certain circumstances, and
 Amounts transferred from an overseas pension scheme and taxable in the fund (see page
45)
$25,000
Cap – 2018/19
Indexed annually with AWOTE and rounded down to the nearest $2,500.
 All excess CCs will be taxed at the individual’s marginal tax rate less 15% offset
 Interest charge payable on increased tax liability resulting from inclusion of excess CCs in
Treatment of excess
assessable income, calculated from start of financial year
 Individual has option to withdraw excess amount from super net of 15% fund tax
Carry-forward unused CC cap

Starting from 1 July 2018, individuals will be able to carry forward their unused CC cap for up to 5 financial years for use in a
future financial year.
Carry-forward unused CC cap

From 2019/20, individual’s CC cap increased if:
 actual CCs are greater than standard CC cap
Requirements  total superannuation balance is less than $500,000 at 30 June of prior financial year, and
 they have unused CC cap available from any or all of prior 5 financial years (occurring from
2018/19 onwards)
Unused CC cap for a  The amount by which the standard CC cap exceeds an individual’s actual CCs in the
financial year financial year
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Non-concessional contributions
Non-concessional contributions (NCC) cap
 Personal contributions not claimed as a tax deduction
 Spouse contributions
 Contributions for a child (apart from employer contributions)
Inclusions
 Amounts transferred from an overseas pension scheme that are not taxable in the fund,
and
 Excess CCs (grossed up to include the 15% fund tax), excluding those which are withdrawn
 Government contributions – see page 39
 Downsizer contributions within limits (see below)
Exemptions
 CGT small business concession contributions within limit – see over page
 Personal injury contributions – see over page
 $100,000 (indexed to 4 x CC cap), or

Cap - 2018/19
 If total superannuation balance as at 30 June 2018 is $1.6 million or more, NCC cap is nil
 Members under age 65 at any time in a financial year may bring forward future annual NCC
cap entitlements, based on their total superannuation balance (see page 94) as at 30 June
of the prior financial year. Where member’s total superannuation balance is:
- less than $1.4 million, total NCCs in 3 year period are capped at $300,000
- $1.4 million to less than $1.5 million, total NCCs in 2 year period are capped at
$200,000
Bring forward
- $1.5 million to less than $1.6 million, bring forward is not available and total NCCs are
arrangement
limited to $100,000
 Bring forward applies from 1 July of first financial year where NCCs exceed $100,000
 Total superannuation balance must also be less than $1.6 million at prior 30 June,
otherwise remaining NCC cap is nil for that year and NCCs will be excessive
 Transitional rules apply where bring forward was triggered in 2016/17 and total NCCs up to
30 June 2017 were less than $540,000 (see below)
 Where bring forward was triggered in 2016/17, remaining NCC cap for 2018/19 is $380,000
Bring forward less NCCs made in 2016/17 and 2017/18
arrangement (transitional
rules)  Total superannuation balance must also be less than $1.6 million at 30 June 2018,
otherwise remaining NCC cap is nil in 2018/19 and NCCs will be excessive
 Individual has option to withdraw excess amounts plus 85% of associated earnings from
super. Total amount of associated earnings taxed at marginal rates, less 15% offset
Treatment of excess
 Excess amounts not withdrawn from super taxed at 46.5% in 2013/14 and 49% in 2014/15,
2015/16 and 2016/17 and 47% in 2017/18 and 2018/19
Downsizer contributions
Downsizer contributions
 Contribution limited to capital proceeds from disposal of a property located in Australia
 Contract for sale must be entered into on or after 1 July 2018
 Individual or their spouse must:
- have owned the property for at least 10 years
- be eligible for a full or partial main residence CGT exemption
Requirements
 Individual must be aged 65 or more at time of contribution
 Contribution must be made within 90 days of change of ownership (ie generally settlement)
 Choice must be made using the ATO form no later than time contribution is made
 Individual must not have previously made a downsizer contribution from the sale of another
property
Cap – 2018/19 $300,000 lifetime limit
Treatment of excess Excess counts towards NCC cap
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CGT small business concession contributions
CGT small business concession contributions
 Contributions where individual owned CGT asset:
- contribution limited to capital proceeds of asset sale that meet CGT small business 15
year exemption (or would have if a capital gain had arisen)
- contribution limited to capital gain that meets CGT small business retirement
exemption
- contributions must be made by later of date of lodgement of tax return or 30 days from
Requirements receipt of capital proceeds
 Contributions where company or trust owned CGT asset:
- contribution limited to payment to CGT concession stakeholder
- contribution must be made within 30 days of payment to CGT concession stakeholder
 Choice made using ATO form no later than time contribution made
 Additional conditions apply
$1,480,000 lifetime limit
Cap – 2018/19
Indexed annually with AWOTE and rounded down to the nearest $5,000
Treatment of excess Excess counts towards NCC cap
Personal injury contributions

Personal injury contributions
 Contributions arising from:
- personal injury settlement relating to workers’ compensation
- personal injury compensation, or
- damages claim or right under statute in writing (court order or otherwise)
Requirements  Contributions must be made within 90 days of the later of receipt of payment or date of
effect of settlement/order
 2 medical practitioners must certify person is unlikely to ever be gainfully employed in a
capacity where reasonably qualified by education, experience or training
 Choice must be made using ATO form no later than time contribution made
Cap No cap applies
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Historical contribution caps
Concessional contributions cap Non-concessional
Financial year CGT small business cap
Under 50 50 and over contributions cap
2007/08 $50,000 $100,000 $1,000,000
2008/09 $50,000 $100,000 $1,045,000
2009/10 $25,000 $50,000 $1,100,000

$150,000 ($450,000
2010/11 $25,000 $50,000 $1,155,000
under the 3 year bring
2011/12 $25,000 $50,000 forward arrangement) $1,205,000
2012/13 $25,000 $25,000 $1,255,000
$35,000 (if age 59 or

2013/14 $25,000 $1,315,000
over at 30 June 2013)
$35,000 (if age 49 or

2014/15 $30,000 $1,355,000
$180,000 ($540,000
$35,000 (if age 49 or
2015/16 $30,000 under the 3 year bring $1,395,000
forward arrangement)
$35,000 (if age 49 or
2016/17 $30,000 $1,415,000
$100,000 ($300,000
2017/18 $25,000 for all individuals under the 3 year bring $1,445,000
forward arrangement)
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Government co-contribution
Co-contribution from 1 July 2018
Personal NCCs made to complying fund for purpose of providing super benefits. Individual must
Eligible contributions
not have excess NCCs
Assessable income, RESC (see page 94) & reportable fringe

Minimum earnings benefits total derived as an employee or carrying on a business
(10%) test >10%
Total assessable income, RESC & reportable fringe benefits total
Tax return Tax return for financial year must be lodged
Age limit Less than age 71 on last day of financial year
Residency Must not hold eligible temporary resident visa
Total superannuation
Less than $1.6 million as at 30 June of prior financial year
balance (see page 94)
Income limit Income 5 must be less than $52,697
Lesser of:
Income5
 eligible contributions x 50%, and
$0 - $37,697
 $500
Amount payable Lesser of:
Income5  eligible contributions x 50%, and

 $500 reduced by $0.03333 per $1.00
$37,697 - $52,697 greater than $37,697
Minimum amount payable is $20
Low income super tax offset

The low income super tax offset replaced the low income super contribution (LISC) from 1 July 2017 and provides a similar
benefit to LISC.
Low income superannuation tax offset
CCs made to complying fund for purpose of providing super benefits. Excludes CCs made to
constitutionally protected funds and certain defined benefit contributions
Assessable income, RESC (see page 94) & reportable fringe

Minimum earnings benefits total derived as an employee or carrying on a business
(10%) test >10%
Total assessable income, RESC & reportable fringe benefits total
Residency Must not hold eligible temporary resident visa
Income limit Adjusted taxable income (see page 94) must be less than $37,000
Lesser of:
Amount payable  15% of eligible contributions, and
 $500
Minimum amount payable is $10
5
Assessable income plus RESC and reportable fringe benefits total less business related deductions.
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Claiming tax deductions - personal super contributions
General conditions
General conditions
Personal contributions must be made to a complying fund for purpose of providing superannuation
Purpose
benefits
Maximum earnings This test was removed effective from 1 July 2017 and individuals can generally deduct their
(10%) test personal super contributions, subject to the exclusions below.
 Individual must be age at least 18 or more when contribution made (unless deriving income
Age limits from carrying on a business or engaging in employment-related activities), and
 Contribution must be made within 28 days after month individual turns 75
Valid notice of intention to claim a tax deduction (a deduction notice), in ATO approved form, must
Deduction notice
be given to fund trustee within certain timeframes (refer to page 41)
Notice
The trustee of the fund must have acknowledged the notice
acknowledgement
Individuals are unable to claim:

 downsizer contributions (see page 36)
Contributions  personal contributions of CGT retirement exemption amounts if under the age of 55
excluded  transfers from foreign superannuation funds (see page 45) cannot be claimed, and
 contributions to constitutionally protected funds or defined benefit interests in Commonwealth
public sector superannuation schemes
Sufficient assessable
A deduction for a personal contribution cannot result in or add to a tax loss
income
The 10% test

Prior to 1 July 2017, if, in the year of the contribution, an individual engaged in activities that resulted in them being
treated as an employee under Super Guarantee legislation, they had to meet the 10% test to be eligible to claim a
deduction for their personal contributions.
Period Test
The individual must be a:

 a person who does not receive any superannuation support in the year of income; or
Prior to 1 July 2007  a person whose assessable and exempt income and reportable fringe benefits total from
eligible employment 6 is less than 10% of the person’s total assessable income and reportable
fringe benefits for the income year
1 July 2007 – The individual’s assessable income, plus reportable fringe benefits total derived as an employee6
30 June 2009 must be less than 10% of their total assessable income and reportable fringe benefits total
The individual’s assessable income, plus RESC (see page 94) plus reportable fringe benefits total
1 July 2009 – 30 June
derived as an employee6 must be less than 10% of their total assessable income, RESC reportable
2017
fringe benefits total
6
Employee and eligible employment are defined in the Superannuation Guarantee Act 1992 and the Income Tax Assessment Act 1936 (as in force
before 1 July 2007) respectively. See also ATO SGR 2005/1 Superannuation guarantee: who is an employee?
40 of 96
Deduction notices
Deduction notice conditions
Notice must be lodged with fund before earlier of:

Timeframes for
lodgement  lodgement of tax return for year contributions were made; and
 end of financial year after financial year contributions were made
Notice invalid if:
 not in respect of the contribution;
 includes all or part of an amount covered by a previous notice; or
 when person gave notice:
When is a notice - they were not a member of the fund
invalid?
- trustee no longer holds contribution (see Taxation Ruling TR 2010/1)
- trustee has begun to pay a super income stream based in whole or part on contribution
(see Taxation Ruling TR 2010/1), or
- person has applied to split contributions with spouse (and trustee has accepted
application).
 Notice cannot be revoked or withdrawn
Varying a notice  Notice can be varied, but only so as to reduce the amount claimed
 Variations are ineffective in circumstances similar to those in which notice is invalid
Fund tax treatment of contributions

Taxable contributions are included in the assessable income of the fund and the taxable income of a super fund is taxed
at 15%.
Taxable contributions typically comprise of: 7 Non-taxable contributions typically comprise of:
 Employer contributions (including salary sacrifice)  Personal contributions not nominated in a valid deduction
 Personal contributions nominated in a valid and notice
acknowledged deduction notice  Downsizer contributions
 Assessable portion of an amount transferred from  CGT small business concession contributions
an overseas super/pension arrangement  Personal injury contributions
 Untaxed element of a rollover within $1,480,000 8  Non-assessable portion of an amount transferred from an
 Third party contributions (other than spouse and overseas super/pension arrangement
child contributions or co-contributions)  Excess untaxed roll-over amounts (net of 47% tax withheld
by the paying fund).
 Spouse contributions
 Child contributions
 Government co-contributions
7
If no TFN is quoted an extra 32% tax will apply to taxable contributions in addition to the standard 15% tax on contributions.
8
Untaxed plan cap applicable in 2018/19. Indexed annually with AWOTE, rounded down to nearest $5,000. This is a lifetime cap that applies on a per
plan basis.
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Contributions tax for higher income earners
An additional 15% tax (Division 293 tax) applies to certain concessional contributions made by or on behalf of very high
income earners.
Division 293 tax
Income threshold – 2018/19 $250,000
The sum of an individual’s:

 taxable income (excluding the taxable component of a superannuation lump sum taxed at
0% ie the amount within the low rate cap)
Income assessed  certain family trust distributions excluded from assessable income
 reportable fringe benefits total
 total net investment loss
 low tax contributions (see below)
Concessional contributions (CCs) excluding:
Low tax contributions
(LTCs)  excess CCs, and
 CCs for State higher level office holders to constitutionally protected funds
 If income exceeds $250,000, additional 15% tax applies to the lesser of:
- income above $250,000, and
- LTCs
Tax treatment of LTCs  Excess CCs not subject to Division 293 tax (instead excess CC tax arrangements will
apply – see page 35)
 Division 293 tax is levied on individual, not super fund (but all or part may be withdrawn
from a fund)
Special rules apply for:
 defined benefit funds
Special rules  State higher level office holders
 Commonwealth judges and justices
 temporary residents departing Australia
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Superannuation Guarantee (SG)
Superannuation Guarantee
Year % of ordinary time earnings
2018/19 9.50
2019/20 9.50
2020/21 9.50
SG rate 2021/22 10.00
2022/23 10.50
2023/24 11.00
2024/25 11.50
2025/26 and later years 12.00
Cut off dates 28 October, 28 January, 28 April, 28 July
Minimum age 18 years (except employees working more than 30 hours each week)
Minimum salary $450 per month
$54,030 per quarter ($216,120 per annum)

Maximum salary
Indexed annually with AWOTE
Available from 1 July 2018 to individuals who:

 have multiple employers
 expect to exceed the CC cap
 apply to the ATO for an exemption certificate to be issued to employer
Quarterly SG opt-out
Application must:
(proposed)
 be in approved form
 specify employer, quarter and financial year exemption applies
 be made at least 60 days before first quarter in exemption period
Not yet law at the time of writing
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Fund choice and portability
Choice of fund Portability
Eligible employees can choose a fund for their SG

Super fund members can rollover/transfer their
Purpose contributions (exemptions apply, eg to members of
super entitlements at any time (exceptions apply)
defined benefit funds).
Relates to Future SG contributions Accumulated superannuation benefit.
Choice of fund can be made once in a 12 month Rollover/transfer can be made once in a 12 month
Frequency
period period
If member has not made investment choice, trustee

must:
 process rollover within 3 business days of
receipt of complete request 9
If member has exercised investment choice, trustee
Employer must begin contributing to chosen fund must:
Timeframe
after 2 months from date choice made
 take steps to redeem investment within 3
business days of receipt of request, and
 pay rollover within 3 business days of receiving
proceeds, and
 process rollover no later than 30 days from
receipt of complete request9
9
Exceptions apply eg where there are illiquid investments
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Foreign superannuation transfers
Foreign super transfers
Lump sums may be transferred from a foreign superannuation fund to an Australian superannuation fund subject to
contribution eligibility rules (see page 34).
The transfer may result in a tax liability in relation to applicable fund earnings 10 payable by the individual or, if a written
election is made, by the fund. The election:
 can be made if the entire interest in foreign fund is transferred to Australian super fund, and
 cannot be revoked or varied once made
Transfers will generally be taxed as follows:
Transfer occurs Contribution type Tax treatment
Within 6 months of
Entire transfer amount NCC (see page 35) Tax free
Australian tax residency
Applicable fund Does not count towards CC or

Taxed at 15% in super fund
After 6 months of earnings NCC caps (see page 35)
Australian tax residency –
tax election made Balance of transfer
NCC (see page 35) Tax free
After 6 months of Applicable fund Taxed at individual’s marginal tax

Australian tax residency – earnings NCC (see page 35) rate
no tax election made Balance of transfer Tax free
Trans-Tasman portability
Transfer direction Key feature/requirement
Both directions  Transfers allowed between Australian superannuation funds and New Zealand
KiwiSaver accounts on permanent emigration only
 Acceptance of transfers by funds/schemes is voluntary
 Australian SMSFs are excluded from the scheme
 Transfer amounts will need to be separately identified by host country scheme
so certain source-country rules can apply (see below)
 Following the transfer any reductions in account balances will apply to host
country savings prior to transferred savings
 Full transfers only are permitted
Transfers from New Zealand to  Treated as member contributions, subject to contribution eligibility rules (see
Australia page 34)
 Generally counted towards NCC cap (see page 35)
 Not a deductible contribution
 Transferred benefits generally not accessible until age 65
Transfers from Australia to New  Tax free on exit from Australian super fund
Zealand  Accessible once member reaches age 60 and retires
 Must be transferred within 30 days of receipt of request 11
10
Generally earnings on foreign super interest accrued between date member became an Australian tax resident and date transfer is received. The
calculation can be more complex if individual has broken periods of residency.
11
Subject to certain information and documentation requirements.
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Spouse contribution splitting
Spouse contribution splitting
Application must be lodged with fund

Timeframe for
application  within the financial year after the financial year in which the contributions were made, or
 in the financial year of contributions if member’s entire benefit is being rolled over or withdrawn
Lesser of:
Maximum splittable  85% of member’s CCs
amount  the CC cap for the year, and
 the taxable component of the member’s interest.
 Treated as a rollover into the spouse’s account
Tax treatment  Does not count towards either CC cap or NCC cap of receiving spouse
 100% taxable component.
Receiving spouse must not be:
Receiving spouse  age 65 years or more, or
conditions  age between preservation age and 65 and ’retired’ (see retirement condition of release on page
55).
Permitted frequency Only one contribution split can be made per financial year
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Self managed superannuation
funds (SMSFs)
Membership and trustee rules
Membership/trustee rules
Fund type Individual trustees Corporate trustee
Member is one of two trustees and either a Member is sole director of the corporate trustee, or one
1 member relative or not an employee of the other of two directors where the member is either a relative
trustee or not an employee of the other director
Each trustee is a member and each Each director of the corporate trustee is a member and
2 – 4 members
member is a trustee each member is a director
 Must have fewer than 5 members. The maximum number of members is proposed to be
increased to 6 from 1 July 2019. Not yet law at the time of writing.
 No member is an employee of another member unless they are relatives
 No trustee receives remuneration from the fund for any services performed in relation to the fund
except where the trustee/director is appropriately qualified and licensed, the work is carried out in
the ordinary course of business and the remuneration received is not more favourable than an
arms-length arrangement
All SMSFs  Circumstances where legal personal representative (LPR) may replace a member as
trustee/director:
- upon death until the death benefits in fund begin to be paid;
- member is under a legal disability; or
- LPR has enduring power of attorney
 A parent or guardian may replace a member who is under a legal disability because of age as
trustee/director.
Sole purpose test

Sole purpose test
A super fund must be maintained solely to provide members with one or more of the following:
 retirement benefits
Core purposes  benefits on or after member reaches 65
 death benefits if member’s death occurred before retirement or reaching age 65 and benefits
are paid to member’s LPR or dependants
A fund may also be maintained for one or more ancillary purposes, that is, the provision of:
 benefits on or after member’s termination of employment with an employer who had
Ancillary purposes contributed to the fund
 benefits on cessation of member’s work due to ill health
 death benefits if member’s death occurred on or after retirement or reaching age 65 and
benefits are paid to member’s LPR or dependants
For ATO guidance see SMSFR 2008/2.
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Super fund residency
A superannuation fund is considered an ‘Australian superannuation fund’ at a time and for an income year in which that
time occurs, if all three of the following tests are satisfied. To be a complying superannuation fund, a fund must satisfy all
three tests at all times (see Taxation Ruling TR 2008/9).
Residency test
Test Description
Australian Trust deed is signed and executed and the initial contribution establishing fund is paid to and
establishment or accepted by trustees in Australia, or any fund asset is situated in Australia
situated asset
Strategic and high level decision making processes of the fund must be ordinarily located in
Australia. For example:
Central management  formulating, monitoring, reviewing or updating the investment strategy
and control (CM&C)  formulating a reserve management strategy
 determining how fund assets are used to fund member benefits
Temporary absences will not generally cause a failure of the CM&C test
This test is satisfied if, either:
 there are no active members ie there are no members for whom contributions (including
rollovers) are made, or
Active members  if there are active members, at least 50% of:
- total market value of fund’s assets attributable to member super interests of active
members, or
- the sum of amounts payable to active members if they left the fund;
are attributable to active members that are Australian residents
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Acquiring assets from related parties
Superannuation funds generally must not intentionally acquire an asset from a related party of the fund (see page 50).
Certain exceptions to the prohibition apply.
Assets which may be acquired from a related party include:
Asset type Description Acquisition conditions
Securities listed on certain Australian and

Listed securities  Must be acquired at market value
international stock exchanges
Real property used wholly and exclusively  Applies only to SMSFs and small APRA funds
Business real in one or more businesses, including where (SAFs)
property subject to a legally enforceable lease with a
related party  Must be acquired at market value
A deposit with an
authorised deposit- Deposit may include cash accounts and
 Must be acquired at market value
taking institution term deposits
(ADI)
 Cannot be acquired from a fund member or their
Life insurance A life insurance policy issued by a life relative
policy insurance company
Unit trust with fixed entitlements to income
Units in a widely and capital where at least 20 unrelated
held unit trust investors together are entitled to 75% or
more of the income and capital
A trust or company with no outstanding

borrowings whose assets consist only of:
 ADI deposits
 real property (which is not subject to a
An interest in a lease arrangement with a related party
company or trust unless it is business real property)
 Applies only to SMSFs and SAFs
that meets the Other restrictions include:
requirements of SIS  Must be acquired at market value
 Assets cannot be subject to a charge
reg 13.22C
 Trust or company cannot run a
business
 Trust or company generally cannot
acquire assets from a related party
unless business real property
In-house assets See definition over page  Acquisition must not cause fund to exceed the in-
house asset threshold (generally 5% of fund’s
total assets)
Acquired from trustee or investment  Asset is acquired for benefit of a member who is
Assets acquired on separated from their spouse or former spouse with
manager of another fund in connection with
breakdown of a no reasonable likelihood of resuming co-habitation
the breakdown of a marriage or de facto
relationship
relationship.  Other conditions apply
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In-house assets
Superannuation funds are generally subject to a limit on in-house assets of 5% of the market value of the fund’s total
assets.
In-house assets
An in-house asset is either:
What is an in-house  a loan to, or investment in, a related party of the fund (see page 50)
asset?  an investment in a related trust of the fund
 an asset of the fund subject to a lease or lease arrangement between fund trustee and a
related party
Assets which are specifically excluded from the definition of in-house asset include:
 life policies issued by life insurance company
 ADI deposits
What is not an in-house  investments in a pooled super trust
asset?  business real property of SMSFs and SAFs which is subject to a lease or lease arrangement
with a related party
 interests in widely held unit trusts – see table above
 property owned as tenants-in-common between the fund and a related party
 certain assets specified in the SIS Regulations – eg reg 13.22C companies or trusts
Collectables and personal use assets

Restrictions apply as to how SMSFs can make, hold and realise investments in collectables and personal use assets.
From 1 July 2016, these restrictions apply to all investments in collectables and personal use assets regardless of when
they were acquired by the SMSF.
Collectables and personal use assets
 Artwork (within the meaning of the Income Tax Assessment Act 1997)
 Jewellery
 Antiques
 Artefacts
 Coins, medallions or bank notes
Include  Postage stamps or first day covers
 Rare folios, manuscripts or books
 Memorabilia
 Wine or spirits
 Motor vehicles
 Recreational boats
 Memberships of sporting or social clubs
Use  Collectables and personal use assets cannot be used by a related party
 Cannot be leased to a related party or stored in the private residence of a related party
Leasing and storage
 Decision in relation to storage of asset must be in writing and held for at least 10 years
 Asset must be insured within 7 days of acquisition (unless asset is membership of a sporting
Insurance
or social club)
 Where a related party receives an asset from an SMSF (eg via in specie member benefit or
Market valuation
purchase), the market price must be determined by a qualified independent valuer
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Related parties
Related party of an SMSF
Member Each member of the fund
An employer who contributes to the fund under an arrangement with the trustee of the fund.
Standard employer-
However, an employer who only contributes to a fund under an agreement with a member, or
sponsor
members, of the fund is not a standard employer-sponsor.
Includes:
‘Associates’ of a  Other SMSF members  Controlled trust
member or standard  SMSF trustee or corporate trustee director  Company sufficiently influenced or where
employer-sponsor  Relative majority voting interest is held
 Partner or partnership (see below for further details)
‘Associates’ or a member or standard employer-sponsor (referred to below as ‘entity’)
Other SMSF members If the entity is a member of an SMSF, each other member of that SMSF.
SMSF trustee or If the entity is the only member of an SMSF, a trustee of the fund or a director of the corporate
corporate trustee trustee of the fund.
director
Includes:
Relative of entity  a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or
adopted child of the entity or their spouse
 the spouse of the entity or the spouse of any of the above relatives.
Includes:
Partner or partnership of  a partner of the entity
entity  the spouse or child of the partner
 a partnership in which the entity is a partner.
Where:
 the entity, together with any of the entity’s ‘associates’, have a fixed entitlement to more than
50 per cent of the capital or income of the trust, or
Controlled trust  the trustee, or the majority of trustees, of the trust acts, or might be reasonably be expected
(controlled by entity) to act, in accordance with the directions, instructions, or wishes of the entity together with
any of the entity’s ‘associates’, or
 the entity together with any of the entity’s ‘associates’ are able to remove or appoint the
trustee, or a majority or the trustees, of the trust.
Where:
Company sufficiently  the company, or a majority of its directors, acts, or might reasonably be expected to act, in
influenced or where accordance with the directions, instructions, or wishes of the entity together with any of the
majority voting interest entity’s ‘associates’, or
held by entity  the entity together with any of the entity’s ‘associates’ are in a position to cast, or control the
casting of, more than 50 per cent of the votes at a general meeting of the company.
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Limited Recourse Borrowing Arrangements
An exception to the general prohibition on super fund borrowing applies to certain Limited Recourse Borrowing
Arrangements (LRBAs).
LRBA Requirements
Limited Recourse Borrowing Arrangements (established from 7 July 2010)
 Borrowed funds used to purchase asset held in separate holding trust
Required structure  Super fund has beneficial interest in asset and right to acquire legal ownership from holding
trust upon repayment of loan
 Cannot be an asset super fund is prohibited from purchasing by law
 Cannot be acquired from a related party subject to limited exceptions (see page 49)
 Must be a single ‘acquirable asset’ or a collection of identical assets with same market value
Asset requirements
(excludes cash)
 LRBA cannot be established over existing fund asset
 Asset can be replaced only in very limited circumstances
 Lender’s rights against the super fund must be limited to LRBA asset
 Loan can be provided by a related party if on arm’s length terms (see table below)
 Guarantor(s) allowed but rights of indemnity against fund limited to LRBA asset
Loan requirements  Loan can be refinanced
 Each drawdown on loan is a new borrowing
 Borrowings can be used to capitalise interest, maintain or repair asset, meet other costs of
LRBA but not to make improvements to asset
Click to access Macquarie LRBA Calculator
Loan Structure
Practical Compliance Guideline PCG 2016/5 outlines the terms required for an LRBA to be considered an arm’s length
arrangement. Trustees do not have to comply with these terms, but must otherwise be able demonstrate their LRBA
replicates commercial loan terms.
Loan feature Asset Acquired
Real property Listed securities/units
RBA Indicator Rate for standard variable housing loans for investors, plus 2% for loans relating to
Interest rate
shares/units
Interest rate type Fixed (max. 5 year term) or variable Fixed (max. 3 year term) or variable
Maximum loan term

15 years 7 years
(including refinancing)
Maximum loan to
70% 50%
market value ratio
Security required Registered mortgage over property Registered charge/mortgage or similar
Personal guarantee Not required Not required
Repayment type Principal and interest Principal and interest
Repayment frequency Monthly Monthly
Loan agreement Written and executed Written and executed
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Other SMSF investment rules
Other SMSF investment rules
 A fund’s investments must be made on an arm’s length basis, unless:
- terms and conditions of the transaction are no more favourable to the other party than if
Arm’s length
dealing on an arm’s length basis
investments
 Dealings during the term of an investment must be at arm’s length or in the same manner as
if dealing at arm’s length
A fund must not:
 lend money, or
Financial assistance
 give any other financial assistance from the fund
to a member of the fund or their relatives
A fund must formulate, give effect to and regularly review an investment strategy that has regard
to:
 the whole of the fund’s circumstances
 investment risks in making, holding and realising, and the likely return from fund assets
Investment strategy
 diversification of fund assets
 liquidity of fund assets
 the fund’s ability to discharge its present and future liabilities
 for SMSFs, whether the fund should provide insurance cover for members
A fund must keep money and other assets separate from:
Separation of assets  a trustee’s personally held assets
 the assets of a standard employer-sponsor (or an associate of)
A fund must not borrow money or maintain an existing borrowing, unless the borrowing:
Prohibition on borrowing  is temporary in nature and meets certain limited criteria, or
 meets the Limited Recourse Borrowing Arrangement criteria (see page 52)
A fund must not (subject to limited exceptions) give a charge over or in relation to:
Charges over assets
and benefits  a fund asset
 a member’s benefit
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Superannuation - access to
benefits
Preservation
There are restrictions to accessing superannuation benefits prior to reaching age 65.
Preservation components and access rules

Preservation component When it can be accessed
Unrestricted non-preserved At any time
Restricted non-preserved When a suitable condition of release has been met
Preserved When a suitable condition of release has been met
Preservation age
Date of birth from To Preservation age
30 June 1960 55
1 July 1960 30 June 1961 56
1 July 1961 30 June 1962 57
1 July 1962 30 June 1963 58
1 July 1963 30 June 1964 59
1 July 1964 and later 60
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Conditions of release (COR)
COR Definition Comments
1. From preservation age:

If an arrangement under which the member
was gainfully employed has ended, and the
trustee is reasonably satisfied that the
No cashing restriction
member intends never to be gainfully
Retirement employed for at least 10 hours per week, or Either definition can be relied on from age
60
2. From age 60:
If an arrangement under which the member
was gainfully employed has ended after
turning age 60. 1
Attaining age 65 N/A No cashing restriction
Limited cashing restriction:

Attaining preservation age N/A Benefit can only be taken as a TTR or non-
commutable income stream (see page 61).
No cashing restriction
Must be cashed as soon as practicable
Death N/A
following the member's death
Benefit cannot be rolled over
Physical or mental ill health where the trustee

is reasonably satisfied the member is unlikely
Permanent incapacity to engage in gainful employment for which the No cashing restriction
member is reasonably qualified by education,
training or experience.
1. The member has an illness or injury,

certified by two registered medical
practitioners, that is likely to result in death No cashing restriction.
within 24 months of certification date. Benefits cannot be rolled over.
Terminal medical condition 2. At least one of the medical practitioners Benefits that accrue during the certification
specialises in an area related to the illness or period are also considered unrestricted non-
injury. preserved.
3. For each certificate, the certification period
must not have ended.
Limited cashing restriction.

Physical or mental ill-health that has caused Benefits (other than member-financed and
the member to (temporarily or otherwise) mandated employer-financed benefits) may
Temporary incapacity be accessed as a non-commutable income
cease gainful employment, but does not
constitute permanent incapacity. stream to continue the pre-temporary
incapacity gain or reward for period of
incapacity.
1
The trustee generally does not need to form an opinion on the member’s intentions concerning future gainful employment. In addition, if the member
has two or more employment arrangements at the same time, the cessation of one of the employment arrangements is the COR in respect of all
preserved benefits accumulated up to that time.
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1. Trustee is satisfied that the member:
 is and has been continuously on
Commonwealth income support benefits
for 26 weeks, and
 is unable to meet reasonable and
immediate family living expenses If definition 1 applies:
or  Access to a single lump sum amount
Severe financial hardship of between $1,000 and $10,000 per
2. The member has reached preservation age
annum
and 39 weeks and trustee is satisfied that the
member:
 has been on Commonwealth income If definition 2 applies:
support for a cumulative period of 39  access to entire benefit
weeks since reaching preservation age;
and
 is not gainfully employed for at least 10
hours per week.
On application to the Regulator (Department

of Human Services) benefits may be released
to:
 pay for medical treatment or medical
transport for member or dependant
 make loan repayments to prevent
foreclosure or mortgagee power of sale Limited cashing restriction:
Compassionate grounds of principal residence Single lump sum amount determined in
 modify principal residence for severe writing by the Regulator.
disability needs of member or dependant
 meet member’s palliative care expenses
 pay expenses for dependant’s palliative
care, death, funeral or burial, and
 meet other expenses related to the
above points.
The trustee receives a request from the
member and:
1. if the benefit is less than $5,000, a copy of Benefit must be paid in full.
the temporary resident visa and passport
Temporary resident’s Special tax arrangements apply to benefits
showing departure, or
permanent departure paid under this COR (see page 78).
2. a written statement from Department of
Benefit cannot be rolled over.
Home Affairs that temporary resident visa has
ended and member has permanently
departed.
Broadly, a member is a lost member if they:

1. are uncontactable
Lost member who is found
where the value of benefit in 2. are an inactive member, or No cashing restriction.
the fund, when released, is 3. joined the fund as a lost member/RSA
less than $200 holder.
Note: exclusions exist, including SMSF
members
Termination of gainful
employment with standard
No cashing restriction with regard to that
employer sponsor where N/A
fund
preserved benefits are less
than $200
Termination of gainful
employment with an  preserved benefits accessed only via
N/A non-commutable life pension/annuity
employer who had
contributed to the fund  restricted non-preserved benefits may
be accessed in full
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Temporary residents
Conditions of release
A limited range of conditions of release apply to current and former temporary residents from 1 April 2009:
Conditions of release (COR) – temporary residents from 1 April 2009
Available No longer available
Death Attaining preservation age (TTR pension)
Terminal medical condition Retirement
Permanent incapacity Attaining age 65
Temporary incapacity Severe financial hardship
Temporary resident’s permanent departure 2 Compassionate grounds
Unclaimed money
With effect from 18 December 2008 the superannuation benefits of a former temporary resident (except for Australian or
New Zealand citizens), if left unclaimed, will be treated as unclaimed money and paid to the ATO sometime after 6
months from the later of their departure from Australia and the temporary visa cessation.
Small and insoluble accounts

Certain lost super account balances need to be transferred to the ATO. Lost accounts affected are those that have:
 balances less than $6,000, or
 been inactive for a period of 12 months and have insufficient records to pay an amount to the member
Former account holders will be able to reclaim their money from the ATO at any time.
From 1 July 2013 interest will be paid by the ATO on unclaimed monies, including lost super accounts. Interest will be
calculated at the CPI rate.
Superannuation funds are proposed to be required to transfer inactive accounts that haven’t received a contribution in 13
months with a balance of less than $6,000 to the ATO from 1 July 2019. Not yet law at the time of writing.
2
For the tax treatment of the payment, see page 78.
57 of 96
Family Law Splitting
Under Federal family law and superannuation legislation, superannuation may be taken into account in property
settlements on the breakdown of a marriage and can be ‘flagged’ or split in accordance with a court order or financial
agreement under either an ‘interest split’ or a ‘payment split’.
The Federal family law regime was extended to certain de facto relationships (including same-sex relationships) from 1
March 2009.
Interest splits 3
 Interest splits generally only apply to accumulation funds and not defined benefit funds.
 A new interest is carved-out from the member spouse’s 4 interest for the non-member spouse. 5
 The new interest can be determined by either a fixed dollar ‘base amount’ or a percentage.
 The amount carved out can be either:
- transferred to a new interest or rolled over to another super fund for the non-member spouse;
- paid as a superannuation lump sum benefit to the non-member spouse (generally only if a full condition of release
is met).
 The amount paid for the benefit of the non-member spouse has its tax and preservation components calculated in
proportion to the components in the member spouse’s interest just before the payment occurs.
 An adjustment may apply to take account of earnings between the time the court order or agreement becomes
operative and the time the benefit is paid or rolled over/transferred.
 CGT rollover may apply in certain circumstances where assets are transferred from a small super fund (i.e. one with
less than 5 members) to another complying super fund for the benefit of the non-member spouse.
Payment splits
A ‘payment split’ may occur where a fund is unable to create a separate interest for a spouse eg defined benefit funds
may be unable to carve-out an entitlement for the non-member spouse. Instead, each ‘splittable payment’ made from the
member spouse’s interest will be split between the spouses according to the agreement or order. 6
Flagging agreement
If a separating couple wish to defer splitting a superannuation interest or making a decision about how to split an interest
(eg because the member spouse is soon to meet a condition of release), they can make a flagging agreement. A flagging
agreement prevents the trustee of the fund from making payments out of the fund or otherwise dealing with the interest
until the flag is lifted.
3
Certain interests cannot be split. An unsplittable interest is generally one with a withdrawal benefit of less than $5,000, or in respect of which a lifetime
or fixed-term non-commutable pension is payable to the member spouse with an annual benefit of less than $2,000.
4
The member spouse is the holder of the relevant superannuation interest.
5
The non-member spouse is the spouse who does not hold the superannuation interest.
6
Certain payments cannot be split. An unsplittable payment includes a payment to the member spouse on compassionate grounds or under financial
hardship, permanent incapacity or temporary incapacity (unless the benefit has been payable for a period of at least 2 years). It also includes a death
benefit payable to a child of the member spouse in certain circumstances.
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First Home Super Saver Scheme
First Home Super Saver Scheme (FHSSS)
Non-mandated employer contributions and personal contributions made from 1 July

2017. Existing CC and NCC caps apply (see page 35)
Eligible contributions of up to $15,000 per year and $30,000 in total, plus associated
Maximum releasable amount
earnings. Note only 85% of eligible CCs can be released
Earnings on eligible contributions calculated daily using Shortfall Interest Charge from:
 1 July 2017 for contributions made in 2017/18, or
Associated earnings  start of month in which the contribution was made for contributions made in
2018/19 and later financial years
until the date ATO makes a first home super saver determination
Withdrawal of eligible contributions and associated earnings allowed from 1 July 2018 to
purchase first home. Individual must:
 enter into contract to purchase/construct property within 12 months (or up to 24
months if ATO grants extension) from when funds are released
Withdrawals  purchase a property that is at greater than or equal to the amount withdrawn
 intend to occupy the property as soon as practical, and
 intend to occupy the property for at least 6 of the first 12 months
Alternatively, amount withdrawn (less tax withheld) may be recontributed to super as
NCC within 12 months
Amount of withdrawal that relates to CCs and earnings taxed at marginal rates less 30%
Tax treatment of withdrawals
tax offset
Individual must notify ATO within 28 days (or longer period allowed by ATO) of entering
Notification into contract to purchase/construct property or recontributing the amount that FHSSS
requirements have been met
To apply for first home super saver determination individual must:

 be aged 18 or more
Eligibility criteria  never have held a freehold interest in real property, a long-term lease of land or a
company title interest in land in Australia, 7 and
 have not previously requested ATO make a first home super saver determination
7
An individual who has previously held a property interest can still meet this requirement if the ATO determines their prior property interest ceased due
to financial hardship and they have not held a property interest since that time.
59 of 96
Superannuation pension phase
Account based pensions (ABPs)
Minimum percentage factors 8
Age 2008/09 to 2010/11 2011/12 to 2012/13 2013/14 and later years
Under 65 2.00% 3.00% 4.00%
65 – 74 2.50% 3.75% 5.00%
75 – 79 3.00% 4.50% 6.00%
80 – 84 3.50% 5.25% 7.00%
85 – 89 4.50% 6.75% 9.00%
90 – 94 5.50% 8.25% 11.00%
95 and over 7.00% 10.50% 14.00%
Feature Description
Pension commenced prior to 1 June:

 pro-rate minimum by number of days in financial year that includes and follows the
Minimum payment in pension commencement day
commencement year
Pension commenced from 1 June to 30 June:
 no minimum pension required
Pro-rate minimum by number of days income stream payable in financial year up to
commutation date
Pre-commutation minimum payment not required if:
Minimum payment in
commutation year  commutation is a partial commutation and remaining account balance is sufficient to
meet annual minimum payment; or
 commutation results from death, family law split, surcharge payment or exercise of
right under financial product cooling-off period.
Maximum payments No maximum, except for TTR pensions (see over page)
8
Multiply factor by 1 July account balance – see table below for pension commencement/commutation year pro-rating.
60 of 96
Transition to retirement pensions
Transition to retirement (TTR) pensions are required to meet the rules below in addition to the rules for regular account
based pensions.
Feature Description
Maximum payments 10% pa (not pro-rated)
At any time:
 back to accumulation phase
 to cash unrestricted non-preserved benefits (if any)
Commutation allowed  to pay superannuation surcharge
 to effect a payment split to a non-member spouse
 to allow payment under certain release authorities
 where a condition of release has been met
 When member attains age 65 or notifies trustee they have met a condition of
Moves to retirement phase (see release for retirement, permanent incapacity or terminal medical condition
page 94)  Upon death of a member where TTR pension is paid to a reversionary
beneficiary. Not yet law at the time of writing
Transfer balance cap

A limit (called the transfer balance cap) applies from 1 July 2017 to the amount of superannuation benefits that can be
transferred into the retirement phase (see page 94) of superannuation (where earnings are exempt from tax) to
commence an income stream.
General transfer balance cap

Feature Description
 Account based pensions/annuities
Inclusions  Capped defined benefit income streams (see below)
 TTR pensions where subsequent condition of release is met (see above)
Exclusions TTR pensions where subsequent condition of release has not been met
Earnings subsequently accrued on amounts in retirement phase not counted towards

Impact of earnings
transfer balance cap
$1.6 million lifetime limit

General transfer balance cap
Indexed annually with CPI and rounded down to nearest $100,000
If transfer balance cap is not fully utilised, amount of unused cap (based on highest
Proportional indexation transfer balance account value) is indexed proportionally in line with increases to
general transfer balance cap
 If transfer balance account exceeds cap, excess amount plus earnings must be
moved back to accumulation or withdrawn as a lump sum
Treatment of excess  Earnings taxed at 15% for all breaches in 2017/18. From 2018/19, earnings taxed
at 15% for first breaches and 30% for second and subsequent breaches
 Excess transfer balance tax is levied on individual, not super fund
Special rules apply for:
Special rules  capped defined benefit income streams (see page 63)
 child death benefit pensions (see page 64)
61 of 96
Transfer balance account
An individual will have a transfer balance account if they receive a retirement phase pension. A transfer balance account
can be credited (increased) or debited (decreased) with transactions including:
Credits Value of credit Timing of credit
The later of:

Existing retirement phase (see  1 July 2017, and
Value of interest as at 30 June 2017  12 months from date pension
page 94) pensions
becomes payable (for reversionary
pensions only)
The later of:
 Value of interest at commencement,
Retirement phase pensions or  pension commencement date, and
commenced on or after 1 July 2017  Value at time of death (for  12 months from date pension
reversionary pensions only) becomes payable (for reversionary
pensions only)
Earnings on excess transfer balance
calculated from day excess occurs to the
earlier of the day:
Each day there is an excess transfer
Excess transfer balance earnings  ATO issues excess transfer balance balance
determination
 Excess transfer balance amount
(including earnings) is removed
Repayment of an LRBA borrowing
Amount equal to increased value of
that increases the value of a The time of the repayment
pension interest
retirement phase pension
Debits Value of debit Timing of debit
Full or partial commutation Amount of lump sum payment When individual receives lump sum
The later of:

Personal injury contributions (see  pension commencement date, and
The amount of the contribution 9  12 months from date pension
page 37)
becomes payable (for reversionary
pensions only)
Loss arising from fraud or Amount of retirement phase pension
The time of the loss
dishonesty reduced by loss
Payment in compliance with Amount of retirement phase pension paid

The time of the payment
bankruptcy notice to trustee in bankruptcy
The later of:

 the operative time for the payment
Proportion of all income stream benefits split as defined in the Family Law
Payment split
to be paid to a spouse Act
 the time the individual first has a
transfer balance account
9
For personal injury contributions made prior to 1 July 2017, the debit will be the greater of the contribution and the sum of the transfer balance credits
arising from existing retirement phase pensions on 30 June 2017.
62 of 96
Capped defined benefit income streams
Feature Description
 Lifetime pensions commenced at any time
 Lifetime annuities commenced prior to 1 July 2017
Inclusions
 Life expectancy pensions/annuities commenced prior to 1 July 2017
 Market linked pensions/annuities commenced prior to 1 July 2017
Value of capped defined benefit income stream credited to transfer balance account.
Calculated as:
 Lifetime pension/annuity
- SV = annual entitlement x 16
Special value (SV)  Life expectancy/market linked pension/annuity
- SV = annual entitlement x remaining term (rounded up)
Where:
 Annual entitlement = first pension payment for year / number of days to which
payment relates x 365
Where income stream is commuted, transfer balance account will be debited by:
 Lifetime pensions/annuities
- full commutation = original credit amount - previous debits relating to
pension
Impact of commutations - partial commutation = (original credit - previous debits) x (1 - SV after
commutation/SV before commutation)
 Life expectancy/market linked pensions/annuities
- full commutation – SV before commutation
- partial commutation – SV before commutation x (1 – SV after
commutation/SV before commutation)
Excess transfer balance resulting solely from capped defined benefit income stream
Treatment of excess
disregarded
$100,000
Defined benefit income cap Indexed to general transfer balance cap / 16
Cap pro-rated where pension commences or member turns 60 during financial year
For those aged 60 or more, or receiving a death benefit pension where deceased was
aged 60 or more, pension payments that exceed defined benefit income cap subject to
additional tax
Taxation of pension payments
 Pension paid from taxed source – 50% of excess included in assessable income
 Pension paid from untaxed source – 10% pension tax offset not payable on
excess
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Child death benefit pensions
A modified transfer balance cap applies for a child receiving a death benefit pension. The amount of the modified transfer
balance cap is the sum of the ‘cap increment’ the child receives for each death benefit pension.
The child’s transfer balance amount will cease when their death benefit pensions are fully commuted (generally age 25,
unless they have a qualifying disability).
PVF Factors
Child pension Parent had

transfer balance Source of child pension Cap increment
commenced …
account
Prior to 1 July 2017 N/A N/A General transfer balance cap ($1.6 million)
General transfer balance cap x child’s

No Accumulation phase
percentage share of deceased’s super interest
Yes Retirement phase only Value of death benefit pensions received
On or after 1 July 2017 Yes Accumulation phase only Nil – death benefit pension generally excessive
 Value of death benefit pensions received

Both retirement phase and from retirement phase only
Yes
accumulation phase  Death benefit pensions paid from
accumulation generally excessive
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Allocated Pension - payment factors
For the 2011/12 and 2012/13 financial years, the minimum limit is 75% of the amount calculated using the applicable
factor. The minimum annual payments return to standard levels in 2013/14 and later years.
Table 1: Pension purchased on or after 1 January 2006 10
PVF Factors PVF Factors
Age Minimum Maximum Age Minimum Maximum

0 29.2 12.0 31 27.4 12.0
1 29.2 12.0 32 27.2 12.0
2 29.2 12.0 33 27.0 12.0
3 29.2 12.0 34 26.8 12.0
4 29.2 12.0 35 26.6 12.0
5 29.2 12.0 36 26.4 12.0
6 29.2 12.0 37 26.2 12.0
7 29.2 12.0 38 26.0 12.0
8 29.2 12.0 39 25.8 12.0
9 29.2 12.0 40 25.5 12.0
10 29.2 12.0 41 25.3 12.0
11 29.2 12.0 42 25.0 12.0
12 29.2 12.0 43 24.8 12.0
13 29.2 12.0 44 24.5 12.0
14 29.2 12.0 45 24.2 12.0
15 29.2 12.0 46 24.0 12.0
16 29.2 12.0 47 23.7 12.0
17 29.2 12.0 48 23.4 12.0
18 29.2 12.0 49 23.1 12.0
19 29.2 12.0 50 22.8 12.0
20 29.2 12.0 51 22.5 11.9
21 29.0 12.0 52 22.2 11.8
22 28.9 12.0 53 21.8 11.8
23 28.7 12.0 54 21.5 11.7
24 28.6 12.0 55 21.1 11.5
25 28.4 12.0 56 20.8 11.4
26 28.3 12.0 57 20.4 11.3
27 28.1 12.0 58 20.1 11.2
28 27.9 12.0 59 19.7 11.0
29 27.8 12.0 60 19.3 10.9
30 27.6 12.0 61 18.9 10.7
10
For the 2005/06 year only, Table 2 may have been used for pensions purchased from 1 January 2006 to 30 June 2006.
65 of 96
Table 1: Pension purchased on or after 1 January 2006 (continued)

62 18.5 10.5 82 9.6 1.4
63 18.1 10.3 83 9.1 No Maximum

64 17.7 10.1 84 8.7 No Maximum
65 17.3 9.9 85 8.3 No Maximum
66 16.8 9.6 86 7.9 No Maximum
67 16.4 9.3 87 7.5 No Maximum
68 16.0 9.1 88 7.2 No Maximum
69 15.5 8.7 89 6.9 No Maximum
70 15.1 8.4 90 6.6 No Maximum
71 14.6 8.0 91 6.3 No Maximum
72 14.2 7.6 92 6.0 No Maximum
73 13.7 7.2 93 5.8 No Maximum
74 13.3 6.7 94 5.5 No Maximum
75 12.8 6.2 95 5.3 No Maximum
76 12.3 5.7 96 5.1 No Maximum
77 11.9 5.1 97 4.9 No Maximum
78 11.4 4.5 98 4.7 No Maximum
79 10.9 3.8 99 4.5 No Maximum
80 10.5 3.1 100 4.4 No Maximum
81 10.0 2.3
66 of 96
Table 2: Pension purchased before 1 January 2006

0 28.6 10.0 31 26.7 10.0
1 28.6 10.0 32 26.5 10.0
2 28.6 10.0 33 26.3 10.0
3 28.6 10.0 34 26.0 10.0
4 28.6 10.0 35 25.8 10.0
5 28.6 10.0 36 25.6 10.0
6 28.6 10.0 37 25.3 10.0
7 28.6 10.0 38 25.1 10.0
8 28.6 10.0 39 24.8 10.0
9 28.6 10.0 40 24.6 10.0
10 28.6 10.0 41 24.3 10.0
11 28.6 10.0 42 24.0 10.0
12 28.6 10.0 43 23.7 10.0
13 28.6 10.0 44 23.4 10.0
14 28.6 10.0 45 23.1 10.0
15 28.6 10.0 46 22.8 10.0
16 28.6 10.0 47 22.5 10.0
17 28.6 10.0 48 22.2 10.0
18 28.6 10.0 49 21.9 10.0
19 28.6 10.0 50 21.5 9.9
20 28.6 10.0 51 21.2 9.9
21 28.5 10.0 52 20.9 9.8
22 28.3 10.0 53 20.5 9.7
23 28.1 10.0 54 20.1 9.7
24 28.0 10.0 55 19.8 9.6
25 27.8 10.0 56 19.4 9.5
26 27.6 10.0 57 19.0 9.4
27 27.5 10.0 58 18.6 9.3
28 27.3 10.0 59 18.2 9.1
29 27.1 10.0 60 17.8 9.0
30 26.9 10.0 61 17.4 8.9
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Table 2: Pension purchased before 1 January 2006 (continued)

62 17.0 8.7 82 8.3 No Maximum
63 16.6 8.5 83 7.9 No Maximum

64 16.2 8.3 84 7.5 No Maximum
65 15.7 8.1 85 7.1 No Maximum
66 15.3 7.9 86 6.8 No Maximum
67 14.9 7.6 87 6.4 No Maximum
68 14.4 7.3 88 6.1 No Maximum
69 14.0 7.0 89 5.8 No Maximum
70 13.5 6.6 90 5.5 No Maximum
71 13.1 6.2 91 5.3 No Maximum
72 12.6 5.8 92 5.0 No Maximum
73 12.2 5.4 93 4.8 No Maximum
74 11.7 4.8 94 4.6 No Maximum
75 11.3 4.3 95 4.4 No Maximum
76 10.8 3.7 96 4.2 No Maximum
77 10.4 3.0 97 4.0 No Maximum
78 10.0 2.2 98 3.8 No Maximum
79 9.5 1.4 99 3.7 No Maximum
80 9.1 No Maximum 100 3.5 No Maximum
81 8.7 No Maximum
Source: Superannuation Industry (Supervision) Regulations 1994
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Term Allocated Pension (TAP)
Annual income may be varied by ±10% of the amount calculated using the payment factors. However, for the 2011/12
and 2012/13 financial years the annual income can be between 67.5% and 110% (inclusive) of the amount calculated
using the payment factors. In 2013/14 and later years the annual income can be between 90% and 110% (inclusive) of
the amount calculated using the payment factors.
Payment Factors Payment Factors
Remaining term Required PF Remaining term Required PF
1 or less 1.00 36 20.29

2 1.90 37 20.57
3 2.80 38 20.84
4 3.67 39 21.10
5 4.52 40 21.36
6 5.33 41 21.60
7 6.11 42 21.83
8 6.87 43 22.06
9 7.61 44 22.28
10 8.32 45 22.50
11 9.00 46 22.70
12 9.66 47 22.90
13 10.30 48 23.09
14 10.92 49 23.28
15 11.52 50 23.46
16 12.09 51 23.63
17 12.65 52 23.80
18 13.19 53 23.96
19 13.71 54 24.11
20 14.21 55 24.26
21 14.70 56 24.41
22 15.17 57 24.55
23 15.62 58 24.69
24 16.06 59 24.82
25 16.48 60 24.94
26 16.89 61 25.07
27 17.29 62 25.19
28 17.67 63 25.30
29 18.04 64 25.41
30 18.39 65 25.52
31 18.74 66 25.62
32 19.07 67 25.72
33 19.39 68 25.82
34 19.70 69 25.91
35 20.00 70 or over 26.00
Note: The term may be varied by up to 12 months in the last year of the income stream.
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Relevant number
The Australian Life Tables (see page 71) are used as the basis for determining the range of available terms for TAPs (see
page 70). For account based pensions that commenced before 1 January 2015, the Life Tables are used to determine the
relevant number for the purposes of the social security income test (see page 85) and for pensions that commenced
before 1 July 2007, the Life Tables were used to determine the relevant number for the purposes of the deductible
amount (see page 71).
Date of commencement Australian Life Table
1/1/2000 - 31/12/2004 11 1995-1997 tables
1/1/2005 - 31/12/2009 2000-2002 tables
1/1/2010 – 31/12/2014 2005-2007 tables
On or after 1/1/2015 2010-2012 tables
Term Allocated Pension (TAP) – available terms for pensions commencing

from 1 January 2015
Age Male Female
60 24 – 40 27 – 40
61 23 – 39 26 – 39
62 22 – 38 25 – 38
63 21 – 37 24 – 37
64 21 – 36 23 – 36
65 20 – 35 23 – 35
66 19 – 34 22 – 34
67 18 – 33 21 – 33
68 17 – 32 20 – 32
69 17 – 31 19 – 31
70 16 – 30 18 – 30
71 15 – 29 17 – 29
72 14 – 28 17 – 28
73 14 – 27 16 – 27
74 13 – 26 15 – 26
75 12 – 25 14 – 25
76 12 – 24 14 – 24
77 11 – 23 13 – 23
78 10 – 22 12 – 22
79 10 – 21 11 – 21
80 9 – 20 11 – 20
11
For TAPs commenced prior to 1 January 2005 there is choice of either the 1995-1997 or 2000-2002 Life Tables.
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Australian Life Tables
Australian Life Tables Australian Life Tables Australian Life Tables Australian Life Tables
2005-2007 2010-2012 2005-2007 2010-2012
Age Male Female Male Female Age Male Female Male Female
0 79.02 83.67 80.06 84.31 27 53.06 57.38 53.92 57.90
1 78.44 83.04 79.39 83.60 28 52.11 56.40 52.96 56.92
2 77.47 82.07 78.42 82.62 29 51.16 55.42 52.00 55.94
3 76.49 81.08 77.44 81.63 30 50.20 54.44 51.04 54.96
4 75.50 80.10 76.45 80.64 31 49.25 53.46 50.08 53.98
5 74.51 79.11 75.46 79.65 32 48.30 52.48 49.13 53.00
6 73.52 78.11 74.46 78.66 33 47.35 51.50 48.17 52.02
7 72.53 77.12 73.47 77.66 34 46.40 50.52 47.22 51.04
8 71.54 76.13 72.48 76.67 35 45.45 49.55 46.26 50.06
9 70.55 75.14 71.49 75.68 36 44.50 48.58 45.31 49.09
10 69.55 74.14 70.49 74.68 37 43.55 47.60 44.36 48.12
11 68.56 73.15 69.50 73.69 38 42.60 46.63 43.41 47.14
12 67.57 72.15 68.51 72.69 39 41.66 45.66 42.46 46.18
13 66.58 71.16 67.51 71.70 40 40.71 44.70 41.51 45.21
14 65.58 70.16 66.52 70.70 41 39.77 43.73 40.57 44.24
15 64.59 69.17 65.53 69.71 42 38.83 42.77 39.62 43.28
16 63.61 68.19 64.55 68.72 43 37.89 41.81 38.68 42.32
17 62.63 67.20 63.56 67.74 44 36.96 40.85 37.75 41.36
18 61.66 66.22 62.59 66.76 45 36.03 39.90 36.81 40.41
19 60.71 65.24 61.63 65.77 46 35.10 38.95 35.88 39.45
20 59.75 64.25 60.67 64.79 47 34.18 38.00 34.95 38.50
21 58.80 63.27 59.70 63.81 48 33.26 37.05 34.03 37.56
22 57.84 62.29 58.74 62.82 49 32.34 36.11 33.11 36.61
23 56.88 61.31 57.78 61.84 50 31.43 35.17 32.20 35.67
24 55.93 60.32 56.81 60.86 51 30.53 34.24 31.29 34.74
25 54.97 59.34 55.85 59.87 52 29.63 33.31 30.38 33.80
26 54.02 58.36 54.89 58.89 53 28.73 32.38 29.49 32.87
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Australian Life Tables Australian Life Tables Australian Life Tables Australian Life Tables
2005-2007 2010-2012 2005-2007 2010-2012
Age Male Female Male Female Age Male Female Male Female
54 27.84 31.45 28.59 31.95 78 9.48 11.35 9.78 11.61
55 26.95 30.53 27.71 31.02 79 8.92 10.67 9.18 10.90
56 26.08 29.61 26.83 30.10 80 8.38 10.01 8.60 10.21
57 25.20 28.70 25.95 29.19 81 7.86 9.37 8.04 9.55
58 24.34 27.79 25.09 28.28 82 7.36 8.75 7.51 8.90
59 23.48 26.89 24.22 27.37 83 6.89 8.17 7.00 8.29
60 22.63 26.00 23.37 26.47 84 6.45 7.61 6.52 7.70
61 21.79 25.11 22.52 25.57 85 6.03 7.08 6.06 7.14
62 20.96 24.23 21.68 24.68 86 5.64 6.58 5.64 6.61
63 20.14 23.35 20.85 23.80 87 5.27 6.11 5.24 6.11
64 19.34 22.48 20.03 22.92 88 4.94 5.68 4.87 5.65
65 18.54 21.62 19.22 22.05 89 4.63 5.28 4.52 5.22
66 17.76 20.76 18.41 21.18 90 4.36 4.91 4.21 4.82
67 16.99 19.92 17.62 20.33 91 4.11 4.57 3.92 4.45
68 16.24 19.08 16.84 19.48 92 3.89 4.27 3.66 4.12
69 15.49 18.24 16.07 18.64 93 3.69 3.99 3.44 3.82
70 14.76 17.42 15.31 17.80 94 3.51 3.75 3.24 3.55
71 14.04 16.61 14.56 16.98 95 3.36 3.53 3.06 3.32
72 13.33 15.82 13.83 16.18 96 3.22 3.33 2.91 3.11
73 12.64 15.03 13.11 15.38 97 3.10 3.16 2.78 2.93
74 11.96 14.27 12.40 14.60 98 2.99 3.00 2.67 2.77
75 11.31 13.51 11.72 13.83 99 2.90 2.86 2.57 2.62
76 10.68 12.78 11.05 13.08 100 2.81 2.74 2.46 2.50
77 10.07 12.05 10.41 12.33
Source: Australian Government Actuary
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Survival probability
Probability of survival for females
Future age
75 80 85 90 95 100
Current age
55 87% 77% 61% 39% 16% 4%
60 88% 78% 62% 39% 16% 4%
65 90% 80% 64% 40% 16% 4%
70 94% 83% 66% 42% 17% 4%
75 100% 89% 71% 45% 18% 4%
80 n/a 100% 80% 50% 21% 5%
Probability of survival for males
Future age
75 80 85 90 95 100
Current age
55 79% 65% 46% 25% 8% 2%
60 81% 67% 48% 25% 8% 2%
65 84% 70% 49% 26% 9% 2%
70 90% 75% 53% 28% 9% 2%
75 100% 83% 59% 31% 10% 2%
80 n/a 100% 71% 38% 13% 3%
Probabilities are based on the Australian Life Tables 2010-2012 (see page 71) issued by the Australian Government
Actuary.
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Superannuation benefits tax
Calculation of tax components
Source Tax free component Taxable component
Crystallised segment
UDC, pre-July 83 component, concessional component, post June
(all values calculated as at 1994 invalidity component, CGT exempt amounts.
30 June 2007)
Value of super
NCCs and other contributions not included in assessable income interest less tax free
Contributions segment
made on or after 1 July 2007. component
Tax-free component of rollovers within super system after 1 July 2007

Other
Excess untaxed roll-over amounts
Proportional component method for benefits

The tax components of superannuation benefits are required to be paid in proportion to the tax free and taxable
components of the member’s superannuation interest in the fund. In the case of a:
 lump sum or rollover, the components will generally be determined in the same proportion as the components of the
member’s superannuation interest in the fund at the time of payment.
 income stream, the payments (including pension and lump sum payments) are paid in the same proportion as the tax
free and taxable components of the superannuation interest at the time the pension commenced (or at the time of a
trigger event in the case of a pension that commenced before 1 July 2007).
Income streams
Special rules may apply to income streams, depending on the income stream’s commencement date.
Commencement date of
Component calculation method
income stream
On or after 1 July 2007 Proportional component method
Before 1 July 2007 and Proportional method where tax free component at time of trigger event =
subsequent trigger event 1 Unused Undeducted Purchase Price (UPP) of existing pension plus any pre July 1983
occurred. component 2
UPP - RCV
Tax free amount (annual deductible amount) = Relevant number
Where
Before 1 July 2007 and no RCV = Residual capital value
trigger event. Relevant number = the life expectancy of the recipient or of the reversionary beneficiary (if
any) if this is longer, at the commencement date of the income stream.
Note: UPP depends on commencement date of income stream - refer table below
1
Trigger events include:
 1 July 2007 if aged 60 or more at that date
 turning 60
 commutation (full or partial)
 death
2
The pre July ‘83 component is not included for pensions that were purchased prior to 1 July 1994 or pensions purchased after that date wholly with a
pre 1994 pension rollover amount.
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Calculation of Undeducted Purchase Price (UPP)
Date of commencement Tax purposes
Pre 1 July 94 pre-July ’83 + concessional + undeducted contributions
1 July 94 – 30 June 97 3 undeducted contributions
1 July 94 – 4 June 983 undeducted contributions + CGT exempt
After 4 June 98 undeducted contributions + CGT exempt + post-June ’94 invalidity
What is a ‘superannuation interest’?

The ATO has provided guidance on its interpretation of the meaning of 'superannuation interest'.
Fund type Meaning of ‘superannuation interest’
Each amount that supports a separate superannuation pension is a separate interest -

multiple superannuation pensions may give rise to multiple superannuation interests. All
SMSF
remaining entitlements held for a member in a SMSF are considered to be one
superannuation interest.
As for SMSFs, each amount that supports a separate superannuation income stream is a
separate interest - multiple superannuation income streams may give rise to multiple
superannuation interests. However, other entitlements in a fund may give rise to separate
Non-SMSF, excluding public interests based on the factual structure of the fund. Broadly, entitlements held for a
sector schemes member in separate 'products' may give rise to separate interests, but entitlements in
separate accounts in the same 'product' will not, unless it can be shown that each account
is separate and distinct from other claims of that kind that the member has against the
fund.
Public sector superannuation The principles above broadly apply, however the legislative basis of members' rights and
schemes obligations may result in 'accumulation' entitlements being separate interests.
3
Unless attributable to a rollover from a pension/annuity starting before that date.
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Tax treatment of lump sum member benefits
1 July 2018 – 30 June 2019
Age Taxable component

Tax free component
Element taxed Element untaxed
30%* up to $1,480,000 4
Under preservation age 20%*
45%* above $1,480,0004
Non-assessable
15%* up to $205,0005
non-exempt income 0% up to $205,000 5
Preservation age to 59 30%* $205,0005 to $1,480,0004
15%* above $205,0005
45%* above $1,480,0004
15%* up to $1,480,0004
Aged 60 and over Non-assessable non-exempt income
45%* above $1,480,0004

Notes:
 If no TFN is quoted, tax on the taxable component of member benefits should be withheld at highest MTR (plus
Medicare levy) for taxpayers under age 60. For those 60 or over who have not quoted their TFN, only the element
untaxed (if any) will be subject to withholding at the highest MTR (plus Medicare levy).
 For non-residents, tax arrangements in the taxpayer’s country of residence will depend on the relevant legislation in
that country. If there is a double tax agreement (DTA) between Australia and the country of residence, and the lump
sum is also subject to tax in that country, the taxpayer may be eligible to claim a tax credit/deduction for any amount
of Australian tax paid.
 Special tax arrangements apply to lump sum benefits paid to temporary residents departing Australia (see page 78).
 The element taxed (for those under 60) and element untaxed are added to the taxpayer’s assessable income. The
taxpayer receives a tax offset to ensure the effective tax rate does not exceed the maximum rate shown above.
4
Untaxed plan cap applicable in 2018/19. Indexed annually with AWOTE, rounded down to nearest $5,000. This is a lifetime cap that applies on a per
plan basis.
5
Low rate cap applicable in 2018/19. Indexed annually with AWOTE, rounded down to nearest $5,000. This is a lifetime cap, reduced by earlier taxable
lump sum member payments.
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Tax treatment of income stream member benefits
Residents
Taxable component
Element taxed Untaxed element
Marginal tax rate*

Under preservation
age (see page 78 for disability
Non-assessable benefits) Marginal tax rate*
Preservation age to non-exempt income Marginal tax rate*
59 less 15% tax offset
Marginal tax rate*

60 and over 6 Non-assessable non-exempt income
less 10% tax offset
Non-residents
Taxpayer Tax treatment
 if no DTA exists between Australia and the taxpayer’s country of residence, the pension income
(excluding tax free component) is included in the taxpayer’s Australian assessable income and
taxed at non-resident tax rates
 recipients aged between preservation age and age 60, will generally be eligible for a 15% tax
Under 60, no DTA offset on the taxable component
 if the taxpayer has not quoted their TFN, the tax on the taxable component of the pension
income will be withheld at the highest MTR*
 the pension income may also be subject to tax in the country of residence, depending on the
arrangements that exist in that country.
If the individual resides in a country with which Australia has a DTA, the pension income will usually
be subject to the tax arrangements that exist in their country of residence. (Relevant provisions of
Under 60, DTA
DTA should be checked as this is not always the case). If pension income is to be taxed in the
individual’s country of residence, withholding obligations will not apply in Australia.
The superannuation pension income is non-assessable non-exempt (if paid from a taxed source). No
withholding obligation exists within Australia (regardless of whether TFN is quoted). The taxpayer
Over 60, all
may be subject to tax arrangements applying to Australian sourced income that exist in their country
of residence.
* Medicare is not payable by non-residents
6
Income from capped defined benefit income streams paid to those aged 60 and over may be subject to additional tax from 1 July 2017.
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Disability superannuation benefits
Tax treatment of lump sum benefits
A lump sum disability superannuation benefit (see page 94) includes an additional tax free component calculated as
follows:
Days to retirement
Additional tax free component 7 = benefit amount 
(Service days + Days to retirement)
Where:
 Days to retirement = number of days from day person stopped being capable of gainful employment to last retirement
day (assumed to be 65th birthday in the absence of a specified retirement age)
 Service days = number of days in service period for the lump sum.
Note the ATO's view is that the denominator in this formula is equal to the number of days from the service period start
date to the person's last retirement day, ie no day is counted twice.
Tax treatment of income stream benefits

An income stream disability superannuation benefit (see page 94) is taxed as follows:
Taxable component
Non-assessable non-exempt Marginal tax rate* less 15%

Under age 60 income Marginal tax rate*
tax offset
Marginal tax rate*

60 and over 8 Non-assessable non-exempt income
less 10% tax offset
Terminal illness benefits

A lump sum benefit paid, from both taxed and untaxed schemes, to an individual because of a terminal medical condition
(see page 55), is non-assessable non-exempt income.
Departing Australia Super Payments

A lump sum paid under the ‘temporary resident’s permanent departure’ condition of release (see page 55) is treated as a
Departing Australia Super Payment (DASP) and subject to the following withholding tax rates, regardless of age:
Taxable component
Tax free component
Element taxed Element untaxed
Non-assessable non-exempt income 35% 9 45%9
 The payment (net of DASP withholding tax) is non-assessable and non-exempt income.
 The above tax rates also apply to a benefit that is paid to a former temporary resident from the ATO following the
transfer from a superannuation fund under the unclaimed money provisions (see page 57)
7
This is an additional tax free component, i.e. added to the tax free component of a lump sum calculated in ordinary circumstances. The ATO have
indicated that the additional tax free component is available where the member rolls their benefit to a different superannuation interest.
8
Payments from capped defined benefit income streams to those age 60 or more may be subject to additional tax from 1 July 2017 (see page 63).
9
Tax rate increased to 65% where payment includes contributions made while temporary resident was a working holiday maker (ie a 417 or 462 visa or
an associated bridging visa).
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Superannuation and estate
planning
Tax treatment of lump sum death benefits
Beneficiary Taxable component
Tax free component
(Tax definition) Element taxed Element untaxed
Dependant Non-assessable non-exempt income
Non-dependant 15%* 30%*

Non-assessable non-exempt income
Benefit is taxed as above depending on the extent to
Estate which a dependant or non-dependant benefits from
proceeds**

** Medicare levy is not payable if a super death benefit is paid to the deceased’s estate.
Notes:
 If no TFN is quoted, the taxable component of a death benefit paid to a non-dependant must have tax withheld at the
highest MTR (plus Medicare levy).
 For non-residents, tax arrangements in the taxpayer’s country of residence will depend on the relevant legislation in
that country. If there is a double tax agreement (DTA) between Australia and the country of residence, and the lump
sum is also subject to tax in that country, the taxpayer may be eligible to claim a tax credit/deduction for any amount
of Australian tax paid.
Calculation of taxed and untaxed elements

Where a lump sum death benefit is paid to a beneficiary who is not a dependant for tax purposes and the trustee of the
fund has either claimed a deduction for life insurance premiums or for the future service portion of the benefit, the death
benefit may include an element untaxed. The components will be calculated as follows:
Component Calculation
Tax free Tax free component calculated under normal rules (see page 74)
Greater of:
Service days
 Amount of lump sum  - tax free component
Service days + Days to retirement
And
 Nil
Taxable
Where:
(element taxed)
 Days to retirement = no. of days from day died to last retirement day (assumed to be 65th
birthday in the absence of a specified retirement age)
 Service days = no. of days in service period for the lump sum
 Note: a further adjustment to this calculation applies if the death benefit lump sum is paid from
an interest that existed pre 1 July 2007 which has an element untaxed and where deceased
client had pre July 83 service
Taxable
Amount of lump sum less element taxed, less tax free component
(element untaxed)
Anti-detriment benefit
Anti-detriment benefits
Lump sum death benefit must be paid to:

 spouse
 former spouse
Eligibility
 child, or
 via estate to one or more of the above
Note: not all super funds provide an anti-detriment benefit
Benefit may be calculated in a number of ways, including under the formula set out in ATO
Interpretative Decision ID 2007/219:
Anti-detriment = 0.15P x C
(R - 0.15P)
Benefit Where:
 P = days in eligible service that occur after 30 June 1988
 R = days in eligible service that occur after 30 June 1983
 C = taxable component of death benefit excluding insurance
The anti-detriment payment will be removed from 1 July 2017. However, it will still be available where death occurs before
1 July 2017 and the death benefit is paid before 1 July 2019.
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Death benefit income streams
Commencement criteria
A SIS dependant (see below) who is not a child of the deceased ie includes:
 a spouse
 an ‘ordinary meaning’ dependant
 a person in an interdependency relationship,
A death benefit can be paid in the
Or
form of a pension if the recipient is:
A child 1 who is:
 less than age 18, or
 aged 18 – 24 inclusive and was financially dependent on the deceased; or
 aged 18 or more and has a qualifying disability. 2
Tax treatment of death benefit income stream
Taxable component
Deceased and Dependant less than Non-assessable Marginal tax rate* less
Marginal tax rate*
age 60 non-exempt income 15% tax offset
Deceased or Dependant age 60 or Marginal tax rate* less

Non-assessable non-exempt income
more 3 10% tax offset
Death benefit income streams – lump sum commutations
Circumstances Tax treatment
Child death benefit pension commutation (where Non-assessable non-exempt income or can be rolled over to commence a
at least one pension payment has been made) new child death benefit pension
Taxed as lump sum death benefit (see page 79) or can be rolled over to
Death benefit pension commutation
commence a new death benefit pension
1
A death benefit pension that is paid to a child must cease when the child reaches age 25, unless the child has a qualifying disability.
2
A 'qualifying disability' is defined in the Disability Act 1986 (section 8) as a disability:
 attributable to an intellectual, psychiatric, sensory, physical or combination of such impairments;
 is permanent or likely to be permanent; and
 results in:
- a substantially reduced capacity of the person for communication, learning or mobility; and
- the need for ongoing support services.
3
Payments from death benefit capped defined benefit income streams may be subject to additional tax from 1 July 2017 where the deceased or
dependant are age 60 or more (see page 63).
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Definitions of dependant
Dependant includes SIS Tax
Spouse, including de facto Yes Yes

Former spouse No Yes
Child under age 18 Yes Yes

4
Child aged 18 or more Yes No
Person in interdependency relationship Yes Yes
‘Ordinary meaning’ dependant Yes Yes
Other No Yes – in limited circumstances 5
The SIS definition of dependant determines who is eligible to receive a superannuation death benefit while the tax
definition determines how the superannuation death benefit is taxed.
Definitions of spouse, child and interdependency

Definitions of spouse, child and interdependency
Includes:
 another person to whom the person is legally married;
 another person (whether of the same or different sex) with whom the person lives on
Spouse a genuine domestic basis in a relationship as a couple; and
 another person with whom the person has a certain type of registered relationship
under a certain state and territory laws. Currently, ACT, NSW, Tas, Vic and QLD have
laws enabling the registration of opposite and same sex couple relationships
Includes:
 an adopted child, a stepchild or an ex-nuptial child of the person;
Child  a child of the person’s spouse; and
 someone who is a child of the person within the meaning of the Family Law Act 1975
(which includes children born as a result of artificial conception or under surrogacy
arrangements)
Two persons (whether or not related by family) have an interdependency relationship if all
of the following are satisfied:
 they have a close personal relationship; and
 they live together; and
Interdependency relationship  one or each of them provides the other with
 financial support; and
 one or each of them provides the other with domestic support and personal care
Note: Additional provisions apply where the dependency definition is not met due to one
member having a disability.
4
Unless they otherwise meet dependency requirements eg through interdependency or as an ‘ordinary meaning’ dependant
5
In certain circumstances, if an individual who is not otherwise a tax dependant will be treated as a tax dependant if they receives a death benefit lump
sum in relation to a person who died in the line of duty as:
 a member of the Defence Force,
 a member of the Australian Federal Police, State or Territory Police Force or
 a protective services officer.
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Tax free income thresholds – if sole source of income
The figures below illustrate the maximum amount of assessable income that can be received before tax applies.
Payments from the ABP are assumed to be all taxable component - element taxed. These figure also assume no other
income is received and the low income tax offset applies. The low and middle income tax offset is also applied in 2018/19.
Medicare levy may be payable.
Effective maximum tax free income

Income Source
2017/18 2018/19
Child/single person pension (ABP) $49,753 $52,542
Testamentary trust $20,542 $21,595
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Social security and aged care
Age Pension ages
Qualification age
Date of birth from To
Female Male
30 June 1952 Already qualified
1 July 1952 31 December 1953 65.5 65.5
1 January 1954 30 June 1955 66.0 66.0
1 July 1955 31 December 1956 66.5 66.5
1 January 1957 or later 67.0 67.0
Service Pension ages (Veterans)

Qualification age
Date of birth
Female Male
On or before 31 December 1953 Already qualified
1 January 1954 or later 60.0 60.0
Note: Non-veterans receiving support from the Department of Veterans’ Affairs are subject to the Age Pension age
requirements.
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Age Pension
Pension payment maximum basic rates
20 March 2018 – 19 September 2018
Pension rate
(includes pension supplement and energy supplement)
Single $23,597.60 per annum ($907.60 per fortnight)
Couple Combined: $35,573.20 per annum ($684.10 each per fortnight)

 Indexed by greater of CPI and Pensioner and Beneficiary Living Cost Index on 20 March and
Indexation 20 September each year
 Single pension rate subject to a minimum of 27.7% of Male Total Average Weekly Earnings
Assets test thresholds

1 July 2018 – 19 September 2018
Homeowner Non-Homeowner
Full pension Pension cut out Full pension Pension cut out
Single $258,500 $561,250 $465,500 $768,250
Couple $387,500 $844,000 $594,500 $1,051,000
Reduction rate Pension reduced by $78 per annum per $1,000 of assets over full pension thresholds.
 Full pension thresholds are indexed each 1 July in line with CPI
Indexation  Cut out thresholds applicable from 1 July 2018 to 19 September 2018. Adjusted 20 March, 1
July and 20 September
Income test thresholds

Full pension Pension cut out
Single $4,472.00 pa $51,667.20 pa
Couple $7,904.00 pa $79,050.40 pa
Pension is reduced by $0.50 (singles) and $0.25 (each member of a couple) per $1.00 of income
Reduction rate
over full pension thresholds
 Full pension thresholds indexed each 1 July in line with CPI
Indexation  Cut out thresholds applicable 1 July 2018 to 19 September 2018. Adjusted 20 March, 1 July
and 20 September
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Work Bonus
1 July 2018 – 30 June 2019
2018/19 2019/20 (proposed)
Employment income exempt from income test 1 $250 pf $300 pf
Maximum accrued unused Work Bonus $6,500 $7,800
Effective employment Single $10,972 $12,272

income threshold 2
Couple (combined) $20,904 $23,504
Pension Bonus Scheme

20 March 2018 – 19 September 2018
The Pension Bonus Scheme is a voluntary scheme that rewards people who defer claiming Age or Service Pension. The
scheme closed to new entrants on 20 September 2009 and was replaced by the Work Bonus (see above). Existing
members of the scheme will continue to accrue entitlements under the old rules.
Bonus years Maximum Bonus - Single Maximum Bonus - Couple (each)
1 year $2,076.40 $1,569.00
2 years $8,305.70 $6,276.20
3 years $18,687.80 $14,121.40
4 years $33,222.80 $25,104.80
5 years $51,910.60 $39,226.20
A tax free lump sum calculated as:

Bonus  Bonus = Age Pension 3 x (0.094 x Years in scheme) x Years in scheme
Bonus can be accrued for a maximum of 5 years, or until the client reaches age 75
Claimant must:
 have qualified for the Age Pension before 20 Sept 2009
Eligibility criteria  continue to work past the date of meeting age and residence requirements for Age
Pension purposes and complete at least 960 hours of gainful work
per year, and
 be registered in the Pension Bonus Scheme
1
Work Bonus is proposed to be extended to include income from self-employment from 1 July 2019. Not yet law at the time of writing.
2
Represents the maximum employment income that can be received without impacting Age Pension entitlements (assuming no other assessable
income). Income above this amount will reduce the maximum pension entitlement under the Income Test. Income thresholds for 2019/20 are estimates
based on income free areas as at 1 July 2018.
3
This is the taxable portion of the maximum pension rate payable for singles or couples.
86 of 96
Deeming
1 July 2018 – 30 June 2019
Under the income test, financial assets such as bank accounts, managed investments and shares are deemed to earn a
certain rate of income, regardless of the income actually earned.
Deeming Max financial asset to

Status Rate below threshold Rate above threshold
threshold receive full pension 4
Single $51,200 $161,230

1.75% 3.25%
Couple $85,000 $282,430
Superannuation accumulation assessment

The table below outlines how superannuation accumulation funds are assessed under the Assets and Income Tests.
Salary sacrificed super contributions are counted as income for Age Pension purposes.
Super accumulation Income test Asset test
Under Account balance

Age/Service Not assessed Not assessed
Pension age Lump sum withdrawal
Account balance Deemed Account balance

From Age/Service
Pension age
Lump sum withdrawal Not assessed Not assessed
4
These figures assume the client has no other assessable assets or income.
87 of 96
Superannuation income stream assessment
The table below outlines how superannuation income streams (non-defined benefit) are assessed under the Assets and
Income Tests.
Super income stream Income test Asset test
Start date: ATE:

Assets Test exempt (ATE) AI – PP pre 20 Sept 04 100%
eg term allocated pension RN 20 Sept 04 -19 Sept 07 50%
post 20 Sept 07 Nil 5
If commenced on or before 31 Dec 14

and recipient is in continuous receipt
of income support payments from this
date:
Account based income stream AI – PP Account balance
RN
Otherwise:
Deemed
Term annuity > 5 years (with no account AI - (PP – RCV)

balance) 6 RN PP - (PP – RCV) x Y
RN
Term ≤ 5 years Deemed
Where:
AI = Annual income being gross payment received during the year
PP = Purchase price less any commuted amounts
RCV = Residual capital value
RN = Relevant number (generally the life expectancy of the recipient or of the reversionary (if any) if this is longer, at
commencement date. However, for a fixed term income stream the RN is the term of the income stream)
ATE = Assets Test exemption
Y = Years elapsed
Assessment of other assets

Asset or action Income test Assets test
Controlling interest in Attributed portion of income of the trust or Market value of attributed assets of the trust or
trust or company company company is assessable.
Life policy surrendered Profit assessed as income for 12 months from The surrender value of the policy is assessable
or matured surrender/maturity date under the assets test.
Gifts above allowable amount will be deemed Gifts above allowable amount assessed for 5
Gifting 7
for 5 years from the date of gift years from the date of gift
5
In limited circumstances, a 100% or 50% ATE may apply if the income stream is funded from the commutation/rollover of a previous asset test
exemption income stream.
6
Alternatively a term of 5 years or less where the term is equal to or greater than the individual’s life expectancy at commencement.
7
Up to $10,000 can be gifted each financial year, subject to a maximum of $30,000 over 5 years.
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Commonwealth Seniors Health Card
20 September 2017 – 19 September 2018
2017/18
Adjusted taxable income (see page 94) plus deemed income from certain
Income assessed
account based pensions from 1 January 2015 8
Cut-out threshold - single $53,799
Cut-out threshold - couple $86,076 (combined) Thresholds increased by $639.60 for

each dependent child cared for
Cut-out threshold - couple (illness
$107,598 (combined)
separated)
A claimant must:
 be an Australian resident, living in Australia
 not be subject to a newly arrived residents waiting period
Eligibility criteria  have reached Age Pension age but not qualify for Age Pension (or not
receive certain other Social Security/Veterans’ Affairs pensions/benefits)
Those who lose their Age Pension entitlement because of the asset test
changes effective from 1 January 2017 will automatically qualify for the CSHC
Indexation Income thresholds indexed each 20 September in line with CPI
Note: Energy Supplement payments are only paid to CSHC holders who have continuously held the card since 19
September 2016.
8
Deemed income from account based pensions is not included in the income test for Commonwealth Seniors Health Card (CSHC) where the pension
commenced on or before 31 December 2014 provided the CSHC is held continuously from 31 December 2014.
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Pension loans scheme
2018/19 2019/20 (Proposed)
Individual: Individual:
 or their partner is at least Age Pension  or their partner is at least Age Pension
age age
Eligibility  qualifies for part-rate pension under either  owns real estate in Australia
income or assets test 9  meets residency requirements
 owns real estate in Australia
 meets residency requirements
100% of max pension less actual pension 150% of max pension less actual pension
Max fortnightly loan
received received
Total loan limit Age component amount x value of real assets 10/10,000
Interest rate 5.25% pa compounded fortnightly
Age component amount 11
Age Factor Age Factor Age Factor
64 $2,430 73 $3,460 82 $4,930
65 $2,530 74 $3,600 83 $5,130
66 $2,630 75 $3,750 84 $5,330
67 $2,740 76 $3,900 85 $5,550
68 $2,850 77 $4,050 86 $5,770
69 $2,960 78 $4,210 87 $6,000
70 $3,080 79 $4,380 88 $6,240
71 $3,200 80 $4,560 89 $6,490
72 $3,330 81 $4,740 90 or more $6,750
9
Including where a nil rate is payable due to one of the tests but not both tests.
10
The value of property used as security for the loan less minimum amount individual is entitled to retain out of proceeds if charge over the property is
enforced.
11
Based on individual’s age at last birthday. For couples, age of the younger partner is used.
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Residential aged care
Fees and charges – new residents from 1 July 2014
Individuals who enter care from 1 July 2014 may be asked to pay one or more of the following fees.
Fee Type Description
 Contribution towards day-to-day living cost
 Payable by all residents
Basic daily fee
 Set at 85% of the annual single person rate of basic Age Pension, or $50.16 per day
(from 20 March 2018 to 19 September 2018)
 Additional daily care fee based on income and assets
Means tested fee  Replaces income tested fee for residents who enter care on or after 1 July 2014
See table below for further details
 A payment for, or contribution towards, the cost of aged care accommodation based on
income and assets
Accommodation payment or  Replaces accommodation bond and charge for residents who enter care on or after 1
contribution July 2014
 Can be paid upfront, periodically, or combination of both
See page 92 for further details
 Additional fee for higher standard of accommodation, services and food

Extra services costs
 Fee set by aged care facility
Means tested fee

An individual’s means tested fee is calculated as follows:
Means tested fee = means tested amount – maximum accommodation supplement
Where:
 means tested amount = income tested amount + assets tested amount
 maximum accommodation supplement = $20,434.96 per annum (from 20 March 2018 to 19 September 2018)
Means tested fee is capped at amount Government would otherwise pay in subsidy and primary care supplements. An
annual cap of $26,964.71 and a lifetime cap of $64,715.36 also apply.
Income test
Income threshold Income tested amount
Single $26,764.40 pa
50% of income above threshold
Couple (each) $26,244.40 pa
Includes (but not limited to) income from:

 employment  deemed income
 income support payments  real estate (excludes rent from former
Income assessed
(eg Age/Service Pension) home where daily accommodation
 overseas pensions payments or contributions are made) 12
For each member of a couple, half of the couple’s combined income is counted
Income thresholds applicable 1 July 2018 to 19 September 2018. Adjusted 20 March, 1 July
Indexation
and 20 September
12
The rental income exemption for residents who are renting out their former home and paying their accommodation costs by periodic payment has
been removed for new residents entering care on or after 1 January 2016.
91 of 96
Assets test
Assets threshold Assets tested amount
Up to $48,500 Nil
$48,500 to $165,271.20 17.5% of assets between thresholds

Single/Couple (each) $20,434.96 + 1% of assets between
$165,271.20 to $398,813.60
thresholds
Above $398,813.60 $22,770.38 + 2% of assets above threshold
Includes (but not limited to):

 financial assets
 value of former home, except if
 real estate
occupied by an eligible person (capped
Assets assessed  superannuation at $165,271.20 per person)
 motor vehicles, boats and caravans  balance of any refundable
 household contents and personal accommodation deposit or contribution
effects
For each member of a couple, half of the couple’s combined assets are counted
Assets thresholds applicable 20 March 2018 to 19 September 2018. Adjusted 20 March and
Indexation
20 September
Accommodation payments and contributions

The amount payable for aged care accommodation is based on an individual’s income and assets and will be either:
 an accommodation contribution – requires an individual to pay part of their accommodation costs
 an accommodation payment – requires an individual to pay the full cost of their accommodation
No accommodation payment or contribution is payable where income and assets are below income and lower assets
thresholds (see page 91).
Accommodation contribution Accommodation payment
Cannot be charged: Cannot be charged:

 unless individual’s means tested
 unless individual’s means tested
amount is equal to, or greater than, the
amount at date of entry is less than
maximum accommodation supplement
maximum accommodation supplement
Rules for charging (see page 91), or
for that date (see page 91)
 they have not provided sufficient
 for respite care
information to work out a means tested
amount
 for respite care
Maximum accommodation Individual’s maximum daily accommodation $550,000 (or higher amount as approved by
payment or contributions contribution 13 x 365 / MPIR 14 Aged Care Pricing Commissioner)
 Refundable accommodation deposit (RAD) or contribution (RAC) (ie upfront lump sum)
 Daily accommodation payments (DAP) or contributions (DAC) (ie ongoing payments)
Payment options
calculated as: refundable deposit x MPIR14 / 365
 Combination of refundable deposit and daily payments
Aged care facility cannot accept RAD or RAC that would leave an individual with assets of
less than $48,500
Minimum permissible assets
Note: Assets assessment is the same as for means tested fee, except value of former home
is not capped.
Maximum permissible
interest rate 5.96% for new residents from 1 July 2018 to 30 September 2018
13
Lesser of individual’s means tested amount and facility’s maximum accommodation supplement.
14
Maximum permissible interest rate.
92 of 96
Fees and charges – pre 1 July 2014 residents
Individuals who entered care prior to 1 July 2014 may be asked to pay one or more of the following fees.
Fee Type Description
 Contribution towards day-to-day living cost
Basic daily fee  Payable by all residents
See table below
 Additional daily care fee based on income
Income tested fee  Only payable by residents who entered care prior to 1 July 2014
See table below
 A payment for, or contribution towards, the cost of aged care accommodation based on
assets
Accommodation bond or
 Can be paid upfront, periodically, or combination of both
charge
 No change to existing payment arrangements for residents who entered care prior to 1
July 2014
 Additional fee for higher standard of accommodation, services and food
Extra services costs
 Fee set by aged care facility
Aged care resident types

Fee Type Definition
Standard Applies to most aged care residents, including full and some part pensioners, with lower
(includes respite residents) amounts of private income.
Applies to residents in care on 19 September 2009, including part pensioners with private
Protected income above a set income threshold and self-funded retirees who were in permanent aged
care on 19 September 2009.
Applies to residents who entered permanent care on or after 20 September 2009, including
Phased part pensioners with private income above a set income threshold and self-funded retirees
who entered care on or after 20 September 2009.
Applies to certain residents who entered care prior to 20 March 2008, including
Non-standard  self-funded retirees

 pensioners who have agreed to pay a big bond, or
 residents who chose not to disclose their financial information to Centrelink.
Basic daily fee and income tested fee

Individuals in aged care prior to 1 July 2014 will not be subject to the new fee arrangements unless the move to a new
facility and elect to be assessed under the new rules. Basic daily fee adjusted 20 March and 20 September. Income
tested fee thresholds adjusted 20 March, 1 July and 20 September.
Income tested fee thresholds
Fee Type Basic daily fee Income tested fee
Single Couple 15 each
Standard $50.16 $26,764.40 $26,244.40
Protected $45.73 $22,583.60 $22,063.60 5/12th of income above

threshold, up to maximum
Phased $50.16 $26,764.40 $26,244.40 of $79.66 per day
Non-Standard $56.94 $26,764.40 $26,244.40
15
For couples, half of the combined income is counted.
93 of 96
Glossary
Term Definition Related sections

 taxable income  Net medical expenses tax offset -
 adjusted fringe benefits in Australia page 13
 target foreign income  FTB Part A – page 22
 total net investment losses  FTB Part B – page 23
Adjusted taxable  Paid Parental leave – page 24
income  reportable super contributions
 tax free social security or DVA pension or benefit for  Child care subsidy – page 25
that year*  Child care benefit – page 26
 less deductible child maintenance expenditure*  LISTO – see page 39
* Excluded from the definition of adjusted taxable income for  CSHC – page 89
CSHC purposes.
A superannuation benefit paid to a person because he or she

suffers physical or mental ill-health and two legally qualified  Total and permanent disability
Disability insurance – page 47
medical practitioners have certified that, because of the ill-
superannuation
benefit
health, it is unlikely that the person can ever be gainfully  Tax treatment of disability benefits
employed in a capacity for which he or she is reasonably – page 78
qualified because of education, training or experience

 taxable income (excluding the taxable component of a
Income for superannuation lump sum taxed at 0%)  Medicare levy surcharge – page 10
surcharge  reportable fringe benefits total  Private health insurance rebate –
purposes  total net investment losses, and page 13
 reportable super contributions (eg salary sacrifice and
personal deductible)
 taxable income
Rebate income  adjusted fringe benefits  SAPTO – page 11
 total net investment losses, and
 reportable super contributions (see below)
Includes all employer 16 contributions ‘in respect of the
income year’ 17 that exceed SG (eg salary sacrifice) to the
extent the individual influences:
 size of the contribution, or
 Spouse contribution tax offset –
 the way the amount is contributed so that assessable page 12
Reportable income is reduced
employer super  Co-contribution – page 39
contributions Excludes:  LISTO – page 39
(RESC)  employer contributions included in assessable income,  Claim tax deductions – personal
and super contributions – page 40
 amounts the employer is required to contribute by an
industrial award or rules of a super fund, and the
individual does not have capacity to influence the
contribution
Reportable super
contributions  RESC for the income year, and  HELP – page 9
(RSC)  personal super contributions claimed as a tax deduction
for the income year
16
For the purposes of RESC, ‘employer’ has the expanded meaning given by section 12 of the Superannuation Guarantee (Administration) Act 1992
(with the exception that a person who is paid to do work wholly or principally of a domestic or private nature for not more than 30 hours per week is
regarded as an employee in relation to that work for the purposes of RESC).
17
‘In respect of an income year’ means a contribution may be included in RESC for a financial year irrespective of when it is actually made. For
example, salary sacrifice contributions made in respect of the last quarter of 2016/17, but actually contributed by the employer in July 2017 are included
in RESC for 2016/17.
94 of 96
Term Definition Related sections
The period during which a superannuation income stream is  Other entity taxation rates – page
payable to a member who has met a condition of release 16
Retirement phase
with a nil cashing restriction. Earnings on income streams in  TTR pensions – page 61
the retirement phase are exempt from tax  Transfer balance cap – page 61
 value of accumulation phase interests
 transfer balance account (excluding account based and
market linked pensions credits/debits and personal
injury contribution debits)  Spouse contribution tax offset –
 current balance of account based pensions and market page 12
Total  Carry-forward unused CC cap –
linked pensions
superannuation page 35
balance  rollovers in transit between funds
 less personal injury contributions  NCC cap – page 36
 Co-contribution – page 39
Total superannuation balance is proposed to include a
portion of an SMSF's outstanding LRBA loan balance where
the loan is entered into on or after 1 July 2018 and the
member has met a full condition of release or the loan is with
a related party of the fund. Not yet law at the time of writing
This is a lifetime limit on the amount of superannuation  Spouse contribution tax offset –
Transfer balance page 12
benefits that can be transferred to the retirement phase to
cap
commence an income stream  Transfer balance cap – page 61
95 of 96
Contact information
For more information about Macquarie products, contact us on 1800 808 508 or fax us at 1800 550 140.
You can also email us at adviser@macquarie.com or visit our website at macquarie.com.au/advisers
If you need to write to us, our address is:
Macquarie Investment Management Limited
GPO Box 4045, Sydney NSW 2001
Other contact information

FPA ATO super enquiries ATO personal tax enquiries
1300 337 301 131 020 132 861
fpa.com.au ato.gov.au/super ato.gov.au/individuals
Centrelink hotline APRA enquiries ASIC

132 300 1300 558 849 1300 300 630
humanservices.gov.au apra.gov.au asic.gov.au

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Big Black Book

Little Black Book

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Little Black Book 2 Fund choice and portability 44

Personal taxation 5 Foreign superannuation transfers 45

Personal income tax rates 5 Spouse contribution splitting 46

Medicare levy and surcharge 10 Membership and trustee rules 47

Personal tax offsets 11 Sole purpose test 47

Capital Gains Tax (CGT) calculation method 14 Super fund residency 48

Termination of employment 14 Acquiring assets from related parties 49

Employment Termination Payments (ETPs) 15 In-house assets 50

Other general taxation information 16 Collectables and personal use assets 50

Interest rates 17 Related parties 51

Fringe benefits tax 17 Limited Recourse Borrowing Arrangements 52

Consumer Price Index (CPI) figures 20 Other SMSF investment rules 53

Average Weekly Ordinary Time Earnings (AWOTE) 21 Superannuation - access to benefits 54

Family assistance 22 Preservation 54

Family tax benefit 22 Conditions of release (COR) 55

Paid parental leave 24 Temporary residents 57

Child Care 25 Family Law Splitting 58

Single income family supplement 28 First Home Super Saver Scheme 59

Insurance 29 Superannuation pension phase 60

Life insurance 29 Account based pensions (ABPs) 60

Total and permanent disability (TPD) insurance 30 Transition to retirement pensions 61

Trauma insurance 31 Transfer balance cap 61

Insurance within superannuation 32 Term Allocated Pension (TAP) 69

Deductibility of TPD insurance premiums in super 33 Australian Life Tables 71

Superannuation accumulation phase 34 Survival probability 73

Contribution eligibility 34 Superannuation benefits tax 74

Contribution caps 35 Calculation of tax components 74

Historical contribution caps 38 What is a ‘superannuation interest’? 75

Government co-contribution 39 Tax treatment of lump sum member benefits 76

Claiming tax deductions - personal super contributions 40 Disability superannuation benefits 78

Fund tax treatment of contributions 41 Terminal illness benefits 78

Taxable income Tax payable* - residents Tax payable – non-residents 1

$18,201 - $37,000 Nil + 19% 32.5%

$37,001 - $90,000 $3,572 + 32.5%

$90,001 - $180,000 $20,797 + 37% $29,250 + 37%

Above $180,000 $54,097 + 45% $62,550 + 45%

Prior year’s tax rates

Taxable income Tax payable* - residents Tax payable – non-residents1

$18,201 - $37,000 Nil + 19% 32.5%

$37,001 - $87,000 $3,572 + 32.5%

$87,001 - $180,000 $19,822 + 37% $28,275 + 37%

Above $180,000 $54,232 + 45% $62,685 + 45%

* Plus Medicare levy.

Future tax rates

Taxable income Tax payable* - residents Tax payable – non-residents1

$18,201 - $41,000 Nil + 19% 32.5%

$41,001 - $120,000 $4,332 + 32.5%

$120,001 - $180,000 $30,007 + 37% $39,000 + 37%

Above $180,000 $52,207 + 45% $61,200 + 45%

Taxable income Tax payable* - residents Tax payable – non-residents1

$18,201 - $41,000 Nil + 19% 32.5%

$41,001 - $200,000 $4,332 + 32.5%

Above $200,000 $56,007 + 45% $65,000 + 45%

* Plus Medicare levy.

Minor tax rates

* Plus Medicare levy.

Interest 10% 3 10%3

Unfranked dividends 15%3 30%3

Direct or indirect interest in Applies where:

 Non-resident tax rates for individuals

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